Liberal senator drafts cryptocurrency bill to regulate ‘stablecoins’ and China’s digital yuan

The use of cryptocurrency is on the rise and the lack of regulation in the sector could threaten Australia’s national security, according to Liberal senator and crypto advocate Andrew Bragg. 

Senator Bragg will introduce a private member’s bill when parliament next sits, including new rules governing crypto exchanges, and Chinese banks dealing with e-yuan in Australia.

“The Chinese government is piloting what they call the digital yuan, which is a digital form of currency, and they’re currently trialling that outside of China as well, with the UAE [United Arab Emirates], Hong Kong and Thailand,” he told RN Breakfast host Patricia Karvelas on Monday.

“That currency, if it became widespread in the Pacific, or even within Australia, would give the Chinese state enormous power, economic and strategic power that it doesn’t have today.

“So I think we need to be prepared for that. We need to know more about this digital currency, so the bill establishes reporting requirements in that regard.”

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Crypto investors have been warned of huge tax bills.

China far ahead of Australia on digital currencies

China was the first major economy to explore the use of digital currencies in 2014, and is far ahead of its global peers.

It has been conducting limited trials of the e-yuan over the past three years.

However, China has yet to launch the digital currency across its population of 1.4 billion people — which is seen by critics as a way to ramp up state control of the payments system.

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