Australia's Crypto Turning Point?

The Australian Government has just appointed pro-crypto Andrew Charlton, Member for Parramatta as Assistant Minister for the Digital Economy. Why should this matter? In a recent parliamentary address, MP Charlton stated the following:

“Cryptocurrencies are no longer just an emerging technology, they’re an asset that is valued by millions of Australians. It represents a new frontier in finance, enabling innovation, efficiency and opportunity in ways we could not have imagined just a decade ago. The Australian Government values this sector too, recognising its potential to drive economic growth, attract investment and cement our place as a leader in the digital economy.

Digital assets are more than a tool for transactions, they are an asset class in their own right, offering new avenues for wealth creation, financial inclusion and secure decentralised systems … and Australians have embraced these possibilities with millions already investing or using cryptocurrency in their daily lives.”

But who is Andrew Charlton, and what has shaped his stance on cryptocurrency and blockchain technology? From the parliamentary website:

Qualifications and occupation before entering Federal Parliament:

• Bachelor of Economics (University of Sydney)
• Master of Economics (University of Oxford)
• PhD Economics (University of Oxford)
• Analyst for the United Nations Development Programme, 2003
• Research Fellow at the London School of Economics from 2005 to 2008
• Senior Economic Adviser to the Prime Minister and G20 Sherpa from 2008 to 2010
• General Manager at Wesfarmers from 2010 to 2014
• Founder and Managing Director of AlphaBeta from 2015 to 2020
• Managing Director of Accenture from 2020 to 2022

AlphaBeta Advisors is a privately held Australian consultancy that combines business strategy, data analytics and econometrics to advise leading organisations on how to respond to profound technological, economic and social change. Would disruptive technology like blockchain and cryptocurrencies be on their radar? It's very likely… In 2020, Accenture acquired AlphaBeta Advisors, and Andrew Charlton became a Managing Director of Accenture.

Accenture has been highly focused on blockchain solutions. In mid-2020, it was selected as the Bank of England’s preferred technology provider to build a Real-Time Gross Settlement (RTGS) system, similar to Australia’s New Payments Platform (NPP), which supports OSKO payments. Over the years, Accenture has partnered with several key players in the blockchain space: with Ripple in 2015, Hyperledger Fabric in 2017 to develop enterprise-grade security systems, DHL in 2018 for a blockchain-based serialisation solution, and Emtech in 2024 for Central Bank Digital Currencies (CBDCs). Given that MP Andrew Charlton served as a Managing Director at Accenture from 2020 to 2022, he should be well-acquainted with blockchain technology, cryptocurrencies, and the critical need for regulatory clarity to support innovation and mainstream adoption.

In his address, MP Charlton goes on further to say:

“Now our government is committed to getting this sector right. We’re working to create a regulatory environment that supports innovation on the one hand, by managing risks and protecting consumers on the other … and by collaborating with industry leaders, researchers and global partners, we aim to establish Australia as a safe, transparent and thriving hub for cryptocurrency and blockchain technology. This is a critical moment for this sector, and together we can harness the value of digital assets to build a resilient, inclusive and innovative future for our economy…”

Crypto industry businesses have described Chalton’s appointment and remarks as “unequivocally good news… Charlton truly understands blockchain and believes in its potential to support Australia’s economy.” Many now hope he will fast-track overdue legislation around digital assets.

The big question is whether there’ll be enough political pressure and motivation to get Australian MPs to pass a bill that really opens the country’s markets and investment scene to the blockchain revolution.