Across his career as a public management academic, ANZSOG's Professor John Alford has seen many things change, and picked up some useful insights alon
We recently moved our readers to a new system. You may need to reset your password here to login.
Not a member ? Join here for free.
Forgot your password?
Home Portfolio Foreign Affairs & Immigration Bitcoin and foreign affairs bring digital to financing
Text size :
DEPARTMENTSDepartment of Foreign Affairs and Trade
TAGS Department of Foreign Affairs and Trade, Business/Finance, economics, Poverty, Development, International economics, Business, Payment systems, Bitcoin, Peer-to-peer computing, Remittance, Microfinance, Electronic money, Money laundering, Rebecca Bryant, DFAT, KlickEx
The Department of Foreign Affairs and Trade doesn’t have a specific policy on cryptocurrencies like Bitcoin yet, but is watching the emerging potential for the technology to support international development. As a federal inquiry continues, politicians want to hear more of the public sector’s possible uses.
Ask about digital currencies like Bitcoin in policy circles and discussion will soon turn to either crime, terrorism and money laundering, or tax and financial regulations. But foreign aid and development might soon be added to that list, following the appearance of Department of Foreign Affairs and Trade senior executive Rebecca Bryant before a Senate inquiry into the new technology last Tuesday.
Where once microfinance was king, now discussion has turned to uses for cryptocurrency.
The “blockchain” technology that underpins digital currencies, or cryptocurrencies, could play a role in aid and development as a way to increase financial inclusion, particularly by slashing the cost of international remittance. While DFAT does not yet have a foreign affairs-specific policy angle on digital currencies, it is trying to keep up.
According to Bryant, DFAT’s assistant secretary for economic engagement, there is a hole in the international aid and development space to be filled by remittance services underpinned by digital currencies. The cost of remittance is usually very high — in the case of sending money from Sydney to Samoa, it averages 12% of the transaction cost.
Receive unlimited access, get all the latest public sector news and features, plus The Juice, our daily news update sent direct to your inbox.
The Mandarin is where Australia's public sector leaders discuss their work and the issues faced within modern bureaucracy. Join today to discover the latest in public administration thinking and news from our dedicated reporters, current and former agency heads and senior executives.
Stephen Easton is a journalist at The Mandarin based in Canberra. He's previously reported for Canberra CityNews and worked on industry titles for The Intermedia Group.
Read Related Content
Pingback: Bitcoin and foreign affairs bring digital to financing - The Mandarin (registration) | Latest real-time bitcoin news()
Pingback: Australia: Bitcoin's growing role in foreign ai...()
Pingback: Bitcoin's growing role in foreign aid and devel...()