Australia’s Crypto Sector Could Outgrow the Energy and Tourism Industries by 2030

By January 7, 2022 No Comments
Australia's Cryptocurrency Industry could Outgrow the Energy and Tourism Sectors by 2030

A report released by analysts at EY suggests that Australia’s crypto sector is on course to add $68.4 billion to the economy as well as 206,000 new jobs by 2030. In terms of employment, the report found that about 11,600 jobs have already been added to the economy, and are suggested to increase to 37,800 by 2025, and then 205,700 by the end of the decade.

The report sets high expectations for the crypto world, which EY suggests could outgrow energy, tourism, and agriculture industries in Australia. The significant growth projection more than triples the industry’s contribution to the economy from the $2.1 billion generated in 2021 to an estimated $7.6 billion annually afterwards.

A fit-for-purpose regulatory framework for the crypto sector

James Manning, founder and CEO of Mawson Infrastructure Group, which is responsible for Australia’s largest Bitcoin mine, said the industry is still at a crossroads, waiting for a fit-for-purpose regulatory framework to improve protection for consumers and the crypto sector in general.

Manning added that if the Bragg recommendations were adopted, it would revolutionise the Australian crypto industry and provide greater security to consumers, driving confidence and innovation in the sector. Liberal senator Andrew Bragg believes his recommendations could boost Australia’s crypto industry’s economic footprint 30-fold by 2030.

Treasurer Josh Frydenberg has disclosed that early this year, the government will act on selected recommendations made by the Bragg report in October 2021. The Treasury planned to open the consultation process on a new exchange licensing framework for the Australian crypto industry, which is currently unregulated. Frydenberg added that a new custody regulatory regime for the exchanges will also be rolled out, aiming to clarify the way assets are held in Australia.

Steve Brown, strategy and transactions partner at EY, stated that fit-for-purpose regulatory systems could provide proper safeguards for new investors and consumers. It will be vital for businesses and consumers benefits as financial markets become more crypto-intensive, seeing Australia’s cryptocurrency and digital asset sector live up to its potential.

Additionally, the EY report also suggested that forming a crypto-mining industry in Australia could help with volatile electricity prices and assist the transition to net zero. Unlike commodity mining, crypto-mining may be easily switched on and off in response to changing electricity demand, supply, and prices. It’s more suitable to reduce volatility in electricity prices by using excess electricity when demand is low such as at night or off-peak periods. Otherwise, switching off operations during hot and cold days.

The report also highlighted Mawson’s partnership with Quinbrook Infrastructure, which uses renewable energy assets to power a 20-megawatt Bitcoin mining facility in Byron Bay. Nick Hughes-Jones, Mawson’s chief commercial officer, said the move could help the nation’s transition to decarbonisation as renewable energy will ultimately be the cheapest energy.

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