Reserve Bank of Australia decries crypto “fads”

The Reserve Bank of Australia (RBA) has issued a warning to consumers who are over-zealous about cryptocurrencies.

The financial institution has reiterated its recommendation to residents to be wary of digital assets that constitute “fads” rather than genuine investment options.

During a November 18 address to the Australian Corporate Treasury Association, RBA head of payments Tony Richard touched on several issues, including central bank digital currencies (CBDCs), stablecoins, and the growing use of cryptocurrency in Australia.

According to a recent survey, 26% of Australians intend to get their loved ones and family a crypto-related gift for Christmas. Richard addressed the increased interest among the Australian public in crypto and drew attention to so-called “meme coins” such as Dogecoin (DOGE) and Shiba Inu (SHIB).

Both tokens experienced robust growth in October, with SHIB hitting a 400% increase in October alone.

Richard raised some concerns over the manner in which the currencies have gathered momentum with investors.

“The recent boom in this area is perhaps best illustrated by the fact that Dogecoin, a cryptocurrency that was started as a joke in late 2013, had an implied market capitalization as high as US$88 billion in June this year”, he said.

He called both DOGE and SHIB “free of useful” function arguing that they were built on public hype, such as “celebrity tweets”.

However, DOGE proponent Elon Musk has not been behind the recent SHIB growth. Richard raised concerns with the fact that some surveys cited that 5% of Australians owned DOGE.

He expressed hopes that investors may be less prone to fear-of-missing-out crazes in the coming years. However, he also urged governments across the globe to start cracking down on protocols and currencies that are clearly bad for the economy or/and environment.

Richard urged consumers to be “less influenced by fads” such as cryptocurrencies that have not proven their worth.

SHIB and DOGE are still great choices if you want to have a bit of fun. We recommend swinging by Bitcasino, 1xBit or FortuneJack.

Source

Updated: 11/19/2021 — 15:00