AUSTRALIA IS TRYING TO UNLEASH THE POWER OF BLOCKCHAIN

Posted 30 July, 2020

New technologies like the blockchain can release values. Australia is considering regulatory reforms to drive the industry forward

A recent report by the New South Wales Treasury Department outlines how an outdated legal framework can lead to overlook the benefits of disruptive technologies such as blockchain. The report calls for reforms to help blockchain help the Australian economy.

In a traditional regulatory model, new laws and regulations are implemented on a prescribed basis. However, new technologies such as autonomous vehicles, AI and especially the blockchain have a constantly evolving cycle of product development.

Therefore, regulators should prescribe new regulations at a pace that matches the pace of technological progress. However, they are currently lagging behind in relation to the so-called “stimulation problem”.

The answer is reform

The paper suggests that by moving to a results-based legal framework, companies can freely adopt, implement, and experiment with any technology that could lead to a desired outcome.

A comprehensive regulatory reform could exploit the maximum potential of current and future disruptive technologies. This regulatory philosophy creates competitive conditions in which companies can continue to innovate and create additional competition to advance the technology sector.

The report notes that small adjustments to the framework could bring huge benefits to the economy. A 5% reduction in compliance fees could result in a net benefit of $ 600 million to $ 4 billion ($ 430 million to $ 2.86 billion).

Reform could also accelerate innovation. This enables companies to save valuable time without having to rely on the approval of the supervisory authorities.

The paper concludes with the suggestion that reforming during the freeze in the middle of Covid-19, where businesses close and more people are unemployed, could accelerate the economic recovery after the pandemic.

The paper says:

“Any improvement in the business environment could mean the difference between a quick recovery and a longer recession. Where the regulatory reform used to make business easier, today it could have the added benefit of making recovery easier. ”

A growing force

In 2018, China's President Xi Jinping announced that blockchain will be a top priority for the country. In the following years, China had taken many initiatives to liberalize and promote blockchain development domestically.

At the beginning of the month, the successful blockchain integration between federal authorities through an E-Seal system led to better overall communication and less paperwork in the Chinese city of Hangzhou.

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