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Australian Senator Says DeFi Is Here To Stay, And Australia Must Not Be Left Behind

Jane Hume, an Australian politician, spoke about Decentralized Finance (DeFi) on Monday at the Australian Financial Review Super & Wealth Summit in Sydney.

In her speech, she referenced the Reserve Bank of Australia (RBA) calling crypto a fad. And she emphasized that it most certainly is not. She further urged policymakers to cautiously embrace blockchain technology like DeFi rather than act fearfully – because it is not going away anytime soon.

Related Reading | Crypto Is Set To Dominate Australian Financial Industry In Less Than 10 Years

The Liberal Party Senator explained that DeFi would present incredible opportunities. And Australia must miss out on these opportunities for fear of the unknown.

DeFi Is Not Going Away

The Senator’s speech comes just days after Tony Richards, the Reserve Bank of Australia’s outgoing head of payments policy, called crypto a fad. In a speech last week, he predicted a future with people being less influenced by these digital currencies with “no issuer, no backing, and highly uncertain value.” Instead, they would lean toward currencies that regulated bodies issue.

Senator Hume, however, called DeFi is an emerging and rapidly evolving area of financial technology with many opportunities. She said that embracing the blockchain technology will drive the country’s economy forward. And also cement Australia as a frontrunner for innovation and economic progress.

While making her point about how crypto is here to stay, she referenced a recent report on financial technology. This report estimated that about 17% of Australians are investing in cryptocurrency. Richards, however, found the estimate unlikely, saying online surveys were not accurate. Hume also mentioned the Commonwealth Bank’s move to allow its customers to hold cryptocurrencies. This move makes it the first Australian bank and one of a few worldwide to offer customers this service.

DeFi market cap at $164.8B | Source: Crypto Total DeFi Market Cap on TradingView.com

Finally, she offered her perspective on the issue. According to her, historically, innovation begins as disruption before it is generally accepted.

“Don’t be the person who thought the iPhone would never take off because people would prefer to have their music and telephone on separate devices,” she said.
”Don’t be the person in 1995 who said the internet was just a place for geeks and criminals and would never become mainstream. And don’t be the person who argued that email was a passing fad.”

Australian Regulators On Crypto

Other Australian Senators like Andrew Bragg have also been pushing for crypto regulations. He opined that this would bring credibility and validity to the blockchain sector.

Related Reading | Top Australian Baseball Club To Pay Players In Bitcoin

Matt Comyn, CEO of the Commonwealth Bank of Australia, talked about the risks of not participating in crypto. Last week, he explained that cryptocurrencies are very volatile and speculative. And that banks need to be involved.

Comyn also said that crypto is here to stay, given customers’ demand to trade crypto. Earlier this month, the bank announced a partnership with crypto exchange Gemini to offer crypto services to its customers.

Featured image by Australian Broadcasting Corporation, Chart from TradingView.com

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PayPal Co-founder Peter Thiel Admits He Underinvested In Bitcoin

Billionaire entrepreneur, venture capitalist, and PayPal co-founder Peter Thiel said he should have bought more Bitcoin. During an interview hosted by the Lincoln Network in Miami on Wednesday, he spoke about cryptocurrencies, central banks, and Artificial Intelligence.

Miami has become a hotspot for crypto investors. Several crypto startups recently announced new offices in the city. The PayPal co-founder’s venture capital firm, Founders Fund, was also an early promoter of Miami as a new tech hub.

Peter Thiel Praises Crypto

During the Miami event, Thiel praised cryptocurrencies and admitted that he may have underinvested in Bitcoin.
“You’re supposed to just buy Bitcoin,” he said, adding: “I feel like I’ve been underinvested in it.” Thiel further pointed out that his only hesitation about investing was that he thought “the secret was already known by everybody.” He concluded by saying “I think the answers are still to go long. Maybe it still is enough of a secret.”

He made these statements after Bitcoin blasted to an all-time high of over $67,000 on Wednesday. Thiel deliberated whether it would rise further. “Bitcoin at $66,000. Is it going to go up? Maybe,” He also added that the surge in crypto prices, “tells us that we are at a complete bankruptcy moment for the central banks.”

Related Reading | As Bitcoin Makes New ATH, Netflow Hints BTC Will Explode Here

In the interview, the tech investor also criticized Artificial Intelligence as a disputant to cryptocurrency. He likened crypto to his political philosophy of being libertarian because it’s a “force for decentralization,”
Therefore, “AI, especially the sort of low-tech, surveillance form, is essentially communist,” because it’s a force for centralization. Thiel further said that he does not want to outlaw AI. Instead, he would like the people building it to “think about how they’re working on a technology that’s going to destroy the world.”

Thiel’s Relationship With Bitcoin

The tech investor has been a Bitcoin believer for a while now. Even in 2018, when Bitcoin’s price was bottoming, Thiel maintained his stance. “I would be long on bitcoin,” he stated.

Related Reading | Billionaire Peter Thiel: Bitcoin’s Potential is Underestimated

Earlier this week, he also talked about Bitcoin at an event hosted by conservative law group Federalist Society. The PayPal co-founder suggested that Bitcoin’s current bull run points to weaknesses in the U.S. political system. “I don’t know that you should put all your money into Bitcoin at $60,000 a Bitcoin right now,” he said.
“But surely the fact that it is at $60,000 is an extremely hopeful sign,” he continued. Describing Bitcoin as “the canary in the coal mine,” Thiel said, “It’s the most honest market we have in the country, and it’s telling us that this decrepit … regime is just about to blow up.”

BTC trading at over $65K | Source: BTCUSD on TradingView.com

In April, while suggesting that Bitcoin may be ‘Chinese financial weapon against the U.S.’, Thiel described himself as a “pro-crypto, pro-Bitcoin maximalist,”

Thiel explained that “From China’s point of view, they want to get — they don’t like the U.S. having this reserve currency, because it gives us a lot of leverage over Iranian oil supply chains and all sorts of things like that,”

He expressed concern with the Chinese government’s goal to weaken the U.S. dollar. However, weeks later, China defied his predictions by launching a wide-ranging crackdown on Bitcoin and other cryptocurrencies.

Featured image by Real Daily, Chart from TradingView.com

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Financial Administration In Slovenia Proposes Special 10% Tax On Crypto Income

Slovenia, though small, is one of the fastest-growing nations in Europe, especially in the business and economic contexts. After its successful economic succession from Yugoslavia, it was the first to join the European Union in 2004 and is the wealthiest Slavic nation, as measured by per capita GDP. Crypto adoption in Slovenia has rapidly grown over the years. The awareness of cryptocurrencies among its citizens is relatively high.

The Proposed Crypto Tax Bill

According to reports by local media, the Financial Administration of the Republic of Slovenia (FURS) has put forward a proposal to change the crypto taxation rules in the country. This proposal aims to introduce a 10% taxable income bill on cryptocurrency asset activity in the near future. The country’s tax authority claims that this change would significantly simplify the way crypto-related income is taxed.

Total crypto market rises to $2.28 Trillion | Source: Crypto Total Market Cap from TradingView.com

Currently, the authority has to analyze an individual’s crypto activity on a case-by-case basis. It examines numerous transactions made by a taxpayer between the purchase and sale of the digital currency as well as the various cryptos they have bought and sold or converted. If the amendments are introduced, the financial administration elaborated that it would no longer have to go through this stagnant and tedious crypto administrative process.

Related Reading | Making Money in Bitcoin Markets? Don’t Forget About Crypto Taxes

“We would like to emphasize that it is not profit which would be taxed but rather the amount a Slovenian tax resident receives on their bank account on turning the virtual currency into cash or when buying a thing.” FURS said according to the media.

Crypto Adoption In Slovenia

In recent times, Slovenia has projected itself as a hotspot for blockchain and cryptocurrency-related activities. With an estimated population of 2 million, the country contains more physical locations accepting cryptocurrency payments than the entire United States.

Related Reading | Slovenia’s Bitcoin City to Become World’s First Fully Crypto Friendly Lifestyle Center

According to GoCrypto, in 2020, more than 1,000 locations now allow cryptocurrency payments, including cafes, restaurants, dentists, hair salons, and hotels. At the beginning of 2019, it was also the only country in the world where you could survive solely on cryptocurrencies.

Featured image from The Slovenia Times, Chart from TradingView.com