ANU PROFESSOR: AUSBIT, NOT BITCOIN, WILL REPLACE CASH IN AUSTRALIA WITHIN 10 YEARS

Imagine a world without the crinkle of banknotes or the clink of coins.A world where every transaction is digital, seamless, and instantaneous. In the past 10 years, Bitcoin 's (BTC 0.54%) price skyrocketed from $478 to $58,400 today, translating to a monster 122-fold gain. In fact, this leading cryptocurrency has outperformed every otherSounds like science fiction?According to Professor Rabee Tourky, Director of the Australian National University (ANU) Research School of Economics, this future is closer than we think. The constantly growing Bitcoin technology could replace cash in Australia within a decadeHe boldly predicts that within the next decade, physical cash will vanish from Australia, not to be replaced by the ubiquitous Bitcoin, but by a government-backed digital currency he dubs ""AusBit."" This isn't some wild speculation; the ANU Research School of Economics has been diligently crafting a model for such a government-certified digital money system, potentially ready for circulation within just five years. While Commonwealth of Australia holds off on removing the double taxation of digital currencies, researchers accept said that they could inwards fact supplant cash altogether inwards the dry reason inwards every bit piffling every bit ten years.But what exactly is AusBit, and why does Professor Tourky believe it will triumph over Bitcoin?What are the potential implications for the Australian economy and its citizens? These currencies are virtual, like Bitcoin; but unlike Bitcoin, which is a private enterprise, they are issued by the state and function much like traditional currencies.This article delves into the details of this fascinating prediction, exploring the factors that could lead to the demise of cash and the rise of AusBit, while also examining the potential challenges and benefits of such a radical shift in the financial landscape.

The Looming Demise of Physical Cash

The world is becoming increasingly digitized, and our financial systems are no exception.The trend away from physical cash is undeniable, driven by factors like convenience, security, and the rise of e-commerce. Printed notes, polymer or paper, will not be in circulation in Australia within a decade, according to ANU expert. With around 1.1 billion banknotes worth $53.6 billion on issue in Australia, the Reserve Bank buys its polymer-based recyclable currency from Note Printing Australia in Victoria.In Australia, this trend is particularly pronounced, with many businesses already preferring card or digital payments. Explore if Bitcoin will replace cash and gold by 2025, with expert predictions and generational investment trends. Michael Saylor predicts Bitcoin could hit $13M and surpass cash and gold by 2025. 77% of young investors prefer Bitcoin over traditional assets like gold An $84Professor Tourky's prediction that cash will disappear within a decade might seem radical, but it aligns with the broader trajectory of technological advancement and changing consumer behavior.

Several factors contribute to the accelerating decline of cash:

• Convenience: Digital payments are simply more convenient than cash, especially for online transactions.
• Security: Carrying large amounts of cash can be risky, while digital payments offer enhanced security features like fraud protection and transaction tracking.
• Hygiene: In a post-pandemic world, concerns about hygiene have further accelerated the shift away from handling physical currency.
• Technological Advancements: The proliferation of smartphones, contactless payment systems, and digital wallets has made digital transactions easier than ever before.

With around 1.1 billion banknotes worth $53.6 billion currently in circulation in Australia, according to the Reserve Bank, the transition away from cash represents a significant shift.But what will replace it?

Why AusBit, Not Bitcoin?

While Bitcoin has captured the world's attention as a decentralized digital currency, Professor Tourky believes that a government-backed alternative, like AusBit, is more likely to become the dominant form of digital money in Australia. The bold call has been made by Professor Rabee Tourky, director of the Australian National University (ANU) Research School of Economics, a school that as earned a solid reputation for producing practitioners at the pointy end of the dark art. In 10 years time there won t be any paper cash.This is due to several key factors:

• Stability and Trust: Government-backed currencies, like AusBit, benefit from the stability and trust associated with the government.This is in contrast to Bitcoin, which is known for its price volatility and lack of central authority.
• Regulation and Control: Governments are more likely to embrace digital currencies they can regulate and control, ensuring compliance with laws and regulations related to money laundering, tax evasion, and other illicit activities.
• Wider Adoption: A government-backed digital currency would likely be mandated for use in government services and payments, which would drive wider adoption among citizens and businesses.
• Reduced Transaction Fees: AusBit could potentially operate with lower transaction fees than Bitcoin, making it more attractive for everyday transactions.Bitcoin transaction fees can fluctuate significantly and can be quite high during periods of network congestion.

Professor Tourky acknowledges the allure of Bitcoin but points to the inherent challenges associated with its decentralized nature. Within a decade, bitcoin will replace U.S. dollar dominance and become the standard currency underpinning the international economy, according to billionaire venture capitalist Tim Draper. 10He argues that a government-backed digital currency offers a more stable and reliable alternative for the Australian economy.

Understanding AusBit: The Future of Australian Currency

While the specifics of AusBit are still under development at the ANU Research School of Economics, we can infer some potential characteristics based on the general concept of government-backed digital currencies, also known as Central Bank Digital Currencies (CBDCs).

Here are some possible features of AusBit:

• Centralized Control: Unlike Bitcoin, AusBit would likely be centrally controlled by the Reserve Bank of Australia (RBA) or another government entity.
• Legal Tender: AusBit would be recognized as legal tender in Australia, meaning that businesses would be legally obligated to accept it as payment.
• Digital Wallet Integration: AusBit would likely be accessible through digital wallets on smartphones and other devices.
• Programmability: AusBit could potentially be programmable, allowing the government to implement specific policies, such as stimulus payments that can only be used for certain goods or services.
• Traceability: Transactions made with AusBit would likely be traceable, allowing the government to monitor financial activity and combat illicit activities.

The introduction of AusBit would represent a significant shift in the way Australians interact with money, offering both opportunities and challenges.

Potential Benefits of AusBit

The adoption of a government-backed digital currency like AusBit could bring numerous benefits to the Australian economy and its citizens:

• Reduced Costs: Eliminating physical cash would save the government money on printing, distributing, and managing currency.
• Increased Efficiency: Digital transactions are faster and more efficient than cash transactions, reducing transaction times and improving overall economic productivity.
• Financial Inclusion: AusBit could provide access to financial services for individuals who are currently unbanked or underbanked, promoting financial inclusion and economic empowerment.
• Combating Illicit Activities: The traceability of digital transactions could help to combat money laundering, tax evasion, and other illicit activities.
• Improved Monetary Policy: AusBit could give the RBA greater control over monetary policy, allowing it to implement targeted stimulus measures and manage inflation more effectively.

For example, imagine the government issuing a stimulus payment directly to citizens' AusBit wallets during an economic downturn.This would ensure that the money reaches the intended recipients quickly and efficiently, stimulating economic activity.

Potential Challenges and Concerns

Despite the potential benefits, the introduction of AusBit also raises several challenges and concerns that need to be addressed:

• Privacy: The traceability of digital transactions raises concerns about privacy and government surveillance.Safeguards would need to be put in place to protect citizens' financial privacy.
• Security: Digital currencies are vulnerable to cyberattacks and hacking.Robust security measures would be essential to protect the AusBit system from malicious actors.
• Accessibility: Ensuring that all citizens have access to AusBit, regardless of their technical skills or internet access, would be crucial to prevent digital exclusion.
• Centralization of Power: A government-backed digital currency could give the government unprecedented control over the financial system, raising concerns about potential abuse of power.
• Dependence on Technology: A purely digital system would be vulnerable to disruptions caused by power outages, internet failures, or other technological glitches.

Addressing these challenges will require careful planning, robust regulatory frameworks, and ongoing monitoring to ensure that AusBit benefits all Australians.

Australia's Stance on Digital Currencies and Taxation

Australia's current approach to digital currencies, like Bitcoin, is somewhat ambivalent. ANU Professor: AusBit, not Bitcoin, Will Replace Cash in Australia within 10 Years: While Australia holds off on removing the double taxation of digital currencies, researchers have said that they could in fact replace cash altogether in the country in as little as 10 years.While the country recognizes the potential of these technologies, it has been slow to address the issue of double taxation.Currently, Bitcoin transactions can be subject to both Goods and Services Tax (GST) on the purchase of Bitcoin and again when the Bitcoin is used to purchase goods or services.

This double taxation has been criticized by many in the cryptocurrency industry as a barrier to adoption and innovation.While there have been discussions about removing the double taxation of digital currencies, no concrete changes have been implemented yet.

The development of AusBit could potentially simplify the taxation of digital currency transactions, as the government could directly integrate tax collection into the AusBit system.However, this would also require careful consideration of privacy and data security issues.

The Global Trend Towards Digital Currencies

Australia is not alone in exploring the possibility of a government-backed digital currency.Several countries around the world are actively researching and developing CBDCs, including China, Sweden, and the United States. concept Search across key concepts extracted from titles and abstracts matching text Search across indexed text content in Pure, such as names, titles, descriptions etc.These countries are motivated by a variety of factors, including:

• Modernizing Payment Systems: CBDCs can modernize payment systems, making them faster, more efficient, and more secure.
• Enhancing Financial Inclusion: CBDCs can provide access to financial services for underserved populations.
• Maintaining Monetary Sovereignty: CBDCs can help countries maintain control over their monetary policy in an increasingly digital world.
• Countering the Rise of Private Cryptocurrencies: CBDCs can offer a government-backed alternative to private cryptocurrencies like Bitcoin, mitigating the risks associated with these volatile and unregulated assets.

The global trend towards digital currencies suggests that the future of money is indeed digital, and Australia needs to be prepared for this transformation.

What About Bitcoin?Its Role in the Future Australian Economy

Even if AusBit becomes the dominant form of digital currency in Australia, Bitcoin could still play a role in the future Australian economy. ANU Professor: AusBit, not Bitcoin, Will Replace Cash in Australia within 10 Years Australia Decides to Keep Bitcoin Sales Tax, Risks Double Taxation Australia s Tax Office Guidelines Open DoorBitcoin could continue to be used as:

• A Store of Value: Some investors view Bitcoin as a digital store of value, similar to gold.
• A Hedge Against Inflation: Bitcoin's limited supply could make it an attractive hedge against inflation.
• A Platform for Innovation: The underlying technology behind Bitcoin, blockchain, could continue to be used for innovative applications beyond just currency.
• A Niche Payment System: Bitcoin could continue to be used as a niche payment system for specific goods or services.

However, Bitcoin's volatility and regulatory uncertainty could limit its widespread adoption as a mainstream currency in Australia.

Preparing for a Cashless Future

Whether it's AusBit, Bitcoin, or another form of digital currency, the trend towards a cashless future is clear.Here are some actionable steps that individuals and businesses can take to prepare for this shift:

1. Embrace Digital Payment Methods: Start using digital payment methods like credit cards, debit cards, and mobile wallets more frequently.
2. Educate Yourself About Digital Currencies: Learn about the different types of digital currencies, their potential benefits, and their risks.
3. Secure Your Digital Assets: Take steps to protect your digital assets from cyberattacks and hacking, such as using strong passwords and enabling two-factor authentication.
4. Adapt Your Business Practices: If you own a business, start accepting digital payments and adapt your business practices to accommodate a cashless environment.
5. Stay Informed: Keep up-to-date with the latest developments in the world of digital currencies and regulations.

By taking these steps, you can prepare yourself and your business for the inevitable shift towards a cashless future and potentially profit from it.

Conclusion: Embracing the Digital Revolution

Professor Tourky's prediction that AusBit will replace cash in Australia within 10 years is a bold one, but it reflects the undeniable trend towards digitalization and the increasing adoption of digital payment methods. Embark on an exceptional academic journey at ANU, Australia's world-leading university. Renowned for research excellence, we foster a vibrant learning environment that inspires and challenges.While the specifics of AusBit are still under development, a government-backed digital currency offers several potential benefits, including reduced costs, increased efficiency, and greater financial inclusion.However, it also raises challenges related to privacy, security, and accessibility.Whether it's AusBit, Bitcoin, or another digital currency, the future of money is undoubtedly digital, and Australia needs to be prepared for this transformation. Professor Bruce Chapman AO(HECS) Higher Education Contributions Scheme. Professor Glenn Withers AO. Immigration Points System. Professor Ross Garnaut AO. Garnaut Climate Change Review. Emeritus Professor Marian Sawer AO. Democratic Audit of Australia. Professor Peter Drysdale AM. Intellectual architect of APEC. Professor Margaret ThorntonThe key takeaways are: physical cash is on its way out, a government-backed digital currency is likely to take its place, and both individuals and businesses need to prepare for this shift.By embracing the digital revolution and addressing the potential challenges proactively, Australia can create a more efficient, inclusive, and secure financial system for the future. Building a legacy: ANU names Cultural Centre in honour of the late Dr Lowitja O Donoghue. A child of the Stolen Generations, Dr Lowitja O'Donoghue went on to become one of Australia s most prominent and respected Aboriginal leaders.Are you ready for a cashless Australia?