In a world where everything seems to be shifting to all things digital, it comes as no surprise that money and other properties have also become digitised and technologically based as well. This is a worldwide phenomenon, and Australia is no exception.
The economy has shifted at unprecedented rates over the past decade. As a result, digital assets and cryptocurrency now have started to appear and become popular in mainstream media—but what are they, and why do they now seem to dominate the present landscape? Let’s explore them below.
What Are Digital Assets?
Put simply, digital assets are any content that’s stored digitally in the form of data. Like most assets, they must be uniquely identifiable and have value. Despite multiple governments and banks not recognising them as money or currency, many internet users accept them as payments in private transactions, and they’re popular investment tools as well nowadays.
Photos, videos, Excel spreadsheets, graphics, text files, PDFs, HTML documents, and audio files can all become digital assets, provided that they’re one-of-a-kind and hold valuable information. And now, people use crypto and non-fungible tokens (NFTs) as some form of modern digitised currency.
How Digital Assets Rose in Australia
How exactly did data become a new form of currency? Numerous trends and factors at play have contributed to the rise of digital assets and payments in Australia over the past decade. However, the recent pandemic has significantly accelerated the rate of their growth.
For safety reasons, many stores have begun refusing physical cash and replacing it with contactless payments. Digital wallets have become more popular than ever, and new currencies and NFTs have also begun dominating the financial landscape. Due to this new trend, some retailers and banks have even started accepting cryptocurrency as a mode of payment.
Australia is one of the many countries in the world that embraced the advancement of crypto and other digital assets. The Reserve Bank of Australia is now assessing the use of wholesale central bank digital currencies (CBDC), and there are also some estimates stating that one in six Australians now owns some form of cryptocurrency.
The Future of Digital Assets and Payments
The current trends are increasingly making it evident that the financial landscape will experience rapid innovations and paradigm shifts. Many foresee that digital assets will be a viable and significant mode of payment in many sectors of the economy, particularly the retail sector. The world may even start to consider digital assets as valuable as physical assets like properties.
The Australian government is currently adopting a “watch and learn” tactic in regulating digital assets, although some jurisdictions are taking proactive steps in doing so. They are now on their way to developing a framework for the shifting landscape and are looking for ways to innovate while protecting the rights of Australian consumers.
Much like the rest of the world, Australia has experienced massive upticks in digital assets and currencies over the last decade. Many factors, including the recent global pandemic, have contributed to the development of these fields. However, current trends suggest that they will not fade out any time soon and will likely continue to dominate the financial landscape.
If you’re looking for digital assets news and articles about related topics, No Names Digital has what you need. We’ll provide you with the latest reports and trends about a range of subjects, such as cryptocurrency, finance, investing, sustainability, and digital marketing. Browse through our content today!