The Australian Government is banning large cash transactions, claiming it is for transparency reasons. However, it is just strengthening cryptocurrencies, including Bitcoin and ETH.
On Tuesday Scott Morrison announced that the Australian government will be cracking down the “black economy” and therefore ban cash payments. Starting July 1, 2019, any business transaction over $10,000 has to be done using electronic payments. The proposal also bans transactions with cash bills that are over a hundred $100 notes or more. By taking such action, the Australian government aims to stop tax avoiders, drug dealers and overall the underground economy.
However bad such idea may sound, it is going to bring cryptocurrencies to foreground. Everyday people are starting to notice the fact that money in the bank account is not quite their private assets. Governments and banks are dictating us how to use our own money. This action should bring more demand to Bitcoin and other cryptocurrencies overall.
Of course, now the government will pop up and say cryptocurrencies support black market and tax avoiders, however, they are missing an important nuance!
If the governments globally were to accept Bitcoin and other crypto assets as a legal tender blockchain technology could possibly bring much bigger transparency.