tl;dr
New research presented at the Australian Digital Economy Conference highlights that Australia could gain billions in economic value by strategically innovating its digital finance sector. Key opportunities include foreign exchange (US$4.8 billion annually) and cross-border payments (US$7.6 billion),...
Australia stands poised to reap billions in economic benefits by innovating its digital finance sector, according to research presented at the Australian Digital Economy Conference. Key areas of opportunity include foreign exchange, estimated to yield US$4.8 billion annually, and cross-border payments with potential gains of US$7.6 billion. Additional asset classes such as investment funds, private credit, public debt, private equity, and niche markets like carbon credits also offer significant economic lift through blockchain-enabled efficiencies.
Despite this vast potential, Australia is currently on track to capture less than half of the projected gains, unlocking only about $1.8 billion per year by 2030 at the current pace. The research highlights blockchain’s critical role in reducing intermediaries and transaction costs, which could facilitate faster settlements and create new economic activities previously hindered by friction and delays.
Industry leaders emphasize the need for clearer licensing frameworks, regulatory reforms, and resolution of debanking challenges to accelerate adoption of digital finance innovations. Australia’s robust financial markets and technological infrastructure provide a strong foundation, yet barriers like outdated systems, murky regulations, and sector resistance—particularly in private credit, commodities, and real estate—are slowing progress due to legal complexity and disruption fears.
Executives from the sector urge faster government action, noting that Treasury’s upcoming digital asset regime must move swiftly to unlock capital and confidence. The conversation points to Australia being “at a key fork in the road,” where coordinated efforts can position the nation as a global leader in digital finance. With an estimated US$12 billion in potential gains hanging in the balance, the critical question is how quickly Australia can mobilize to realize this opportunity and shape the future of its digital economy.