The government of Australia is not presently contemplating a strategic cryptocurrency reserve, notwithstanding US President Donald Trump revealing the initiative in the United States just a few days prior.
On March 2, US President Donald Trump declared that the President’s Working Group on Digital Assets was mandated to incorporate XRP (XRP), Solana (SOL), Cardano (ADA), Bitcoin (BTC) and Ether (ETH) into the crypto strategic reserve.
A number of other states in the US are also weighing the addition of crypto to their financial statements.
Nevertheless, it is understood that the current governing party has no intentions of creating a crypto reserve.
An official for Australian Assistant Treasurer and Financial Services Minister Stephen Jones informed Cointelegraph that the government is concentrating on the regulation of digital asset platforms.
“The Albanese Government has engaged in consultations regarding our proposed structure to create a suitable digital asset regulatory framework, and we are continuing to collaborate closely with the industry,” stated the spokesperson.
“The Albanese Government recognizes that blockchain and digital assets offer significant opportunities for our economy, our financial sector, and innovation.”
A shift in government may be imminent for Australia, however. Constitutionally, a new federal election must occur on or before May 17, and the most recent YouGov poll indicates the center-right coalition holds a slight advantage over the center-left Labor government, with a lead of 51% to 49%.
A representative for the Coalition did not promptly reply to a request for commentary.
In conversation with Cointelegraph, Tom Matthews, head of corporate affairs at Australian crypto exchange Swyftx, mentioned that although the concept of a reserve is well-received, it can also be “fraught with complexity,” and if not managed appropriately, poses the risk of concentration with certain tokens.
“If one of the primary objectives of your country’s strategic reserve is to mitigate crises, the price fluctuations of crypto present a challenge. It is quite hard to discern where the political support will arise,” he expressed.
Matthews theorizes that a more plausible scenario is the formation of a long-only sovereign wealth fund that holds cryptocurrencies.
Jonathon Miller, managing director for Australia at Kraken, shared with Cointelegraph that crypto has already firmly positioned itself as an investment-grade asset, with ETFs on prominent exchanges, superannuation funds, and sovereign wealth funds already having invested for a considerable duration.
“If it’s appropriate for them, it’s undoubtedly worthy of consideration for long-term asset allocators such as the Future Fund and even the Treasury,” he noted.
Related: Crypto voters may influence the upcoming Australian federal election: YouGov poll
This development coincides with regulators in the nation signaling intentions to refocus on the crypto sector.
Brendan Thomas, CEO of the Australian Transaction Reports and Analysis Center, mentioned in December of the previous year that the Anti-Money Laundering regulator was shifting its attention towards the cryptocurrency sector in 2025 amidst a crackdown on crypto ATM providers that may be violating Anti-Money Laundering regulations.
The Australian Securities and Investment Commission published a consultation document on proposed guidance for crypto in December as well, categorizing numerous digital assets as financial products and mandating firms operating in crypto to acquire licenses.
The nation has additionally emerged as a center for Bitcoin and crypto ATMs, with data from coin ATM Radar indicating it has the third-largest quantity globally at over 1,453 ATMs, an increase from 67 in August 2022.
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