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

Cryptocurrency use is growing and the lack of regulation in the sector could threaten Australia’s national security, according to Liberal senator and crypto campaigner Andrew Bragg.

Senator Bragg will introduce a private member’s bill when parliament next sits, including new rules for crypto exchanges, and Chinese banks handling 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 trying it outside of China as well, with the UAE [United Arab Emirates]Hong Kong and Thailand,” he told RN Breakfast host Patricia Karvelas on Monday.

“This currency, if it became widespread in the Pacific, or even in Australia, would give the Chinese state enormous power, economic and strategic power that it does not 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 way ahead of its global peers.

It has conducted limited trials with the e-yuan over the past three years.

However, China has yet to roll out the digital currency across its population of 1.4 billion people – seen by critics as a way to increase government control over the payment system.

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