1 00:00:00,200 --> 00:00:03,840 Speaker 1: Good morning everybody. Welcome to Daily ODS. It is Thursday, 2 00:00:03,960 --> 00:00:07,840 Speaker 1: the ninth of December, Navy Day in Sri Lanka Zara. 3 00:00:07,920 --> 00:00:10,520 Speaker 1: Today we're going to be talking through the government's announcements 4 00:00:10,560 --> 00:00:14,920 Speaker 1: yesterday on all things cryptocurrency, digital wallets and buy now 5 00:00:14,960 --> 00:00:18,919 Speaker 1: pay laters. There was a very modern digital tone to 6 00:00:18,960 --> 00:00:21,279 Speaker 1: the announcements yesterday. But first Sara take us through the 7 00:00:21,360 --> 00:00:21,960 Speaker 1: day's news. 8 00:00:22,800 --> 00:00:26,840 Speaker 2: Yesterday, Prime Minister Scott Morrison announced Australian officials will no 9 00:00:26,960 --> 00:00:30,520 Speaker 2: longer attend Beijing's Winter Olympics next year, due to quote, 10 00:00:30,600 --> 00:00:33,880 Speaker 2: human rights abuses in Xingxiang and many other issues that 11 00:00:33,960 --> 00:00:38,120 Speaker 2: Australia has consistently raised. This does come after the US 12 00:00:38,200 --> 00:00:40,839 Speaker 2: and New Zealand also announce that they'll not be sending 13 00:00:40,840 --> 00:00:44,120 Speaker 2: diplomats to the Games. It is important to note here, however, 14 00:00:44,240 --> 00:00:45,720 Speaker 2: the athletes will still be going. 15 00:00:46,240 --> 00:00:49,200 Speaker 1: New South Wales Health has some nerves this morning after 16 00:00:49,240 --> 00:00:52,239 Speaker 1: confirming five people who attended a party boat cruise in 17 00:00:52,280 --> 00:00:55,680 Speaker 1: Sydney last Friday have tested positive to COVID nineteen, with 18 00:00:55,800 --> 00:01:00,320 Speaker 1: preliminary results indicating to have the new omicron variant. About 19 00:01:00,320 --> 00:01:02,520 Speaker 1: one hundred and forty people who attended the party, all 20 00:01:02,600 --> 00:01:03,920 Speaker 1: of whom are now in isolation. 21 00:01:04,720 --> 00:01:07,839 Speaker 2: Pam Scott Morrison has said the comments made by Coalition 22 00:01:08,160 --> 00:01:12,600 Speaker 2: MP George Christensen on a US Conspiracy Theorist's web show 23 00:01:12,680 --> 00:01:16,720 Speaker 2: were quote appalling. Morrison added that Christensen should quietly go 24 00:01:16,800 --> 00:01:20,600 Speaker 2: into retirement because as we know, George Christensen isn't planning 25 00:01:20,640 --> 00:01:24,760 Speaker 2: to contest the next election. During the appearance, Christensen encouraged 26 00:01:24,880 --> 00:01:30,160 Speaker 2: viewers to protest outside Australian embassies over the country's pandemic restrictions. 27 00:01:30,600 --> 00:01:32,920 Speaker 2: The MP also laughed when the host of the show 28 00:01:32,959 --> 00:01:35,959 Speaker 2: compared Australia's quarantine facilities to Auschwitz. 29 00:01:36,520 --> 00:01:38,319 Speaker 1: And for today's good Yews, we go to the world 30 00:01:38,360 --> 00:01:41,560 Speaker 1: of tennis. Ash Barty has won the Women's Tennis Association's 31 00:01:41,640 --> 00:01:43,840 Speaker 1: Player of the Year award for the second time in 32 00:01:43,920 --> 00:01:46,920 Speaker 1: her career. This comes after Barty, who won the Wimbledon 33 00:01:46,959 --> 00:01:50,120 Speaker 1: tournament in July, finished the year as number one ranked 34 00:01:50,120 --> 00:01:52,560 Speaker 1: tennis player for the third consecutive season. 35 00:01:57,440 --> 00:02:00,360 Speaker 3: But what we're seeking to do is modernize the payment 36 00:02:00,440 --> 00:02:03,880 Speaker 3: system to broaden out the types of services and products 37 00:02:04,120 --> 00:02:07,520 Speaker 3: that are governed by regulation. With respect to cryptocurrency, we 38 00:02:07,600 --> 00:02:10,040 Speaker 3: want to take it out from the shadows, bring it 39 00:02:10,080 --> 00:02:13,280 Speaker 3: into a considered Regulatory Framework ZARA. 40 00:02:13,360 --> 00:02:16,720 Speaker 1: That was Federal Treasurer Josh Frodenberg announcing a series of 41 00:02:16,800 --> 00:02:20,960 Speaker 1: changes to Australia's financial systems. Fredenburg described it as the 42 00:02:21,120 --> 00:02:23,840 Speaker 1: largest reforms to our payment systems in a quarter of 43 00:02:23,840 --> 00:02:26,080 Speaker 1: a century and made the claim that this was about 44 00:02:26,080 --> 00:02:28,920 Speaker 1: bringing Australia into the twenty first century. 45 00:02:29,360 --> 00:02:32,000 Speaker 2: Here it's important to add that the full details on 46 00:02:32,120 --> 00:02:36,200 Speaker 2: all aspects of this regulatory change aren't expected until the 47 00:02:36,280 --> 00:02:40,079 Speaker 2: end of twenty twenty two after the federal election, given 48 00:02:40,080 --> 00:02:42,800 Speaker 2: that various agencies will need to be consulted with and 49 00:02:42,919 --> 00:02:46,000 Speaker 2: report back to the Government of the day. There are, however, 50 00:02:46,240 --> 00:02:49,480 Speaker 2: three main aspects that the Treasurer outlined in a speech 51 00:02:49,520 --> 00:02:51,560 Speaker 2: given yesterday. Sam, talk me through them. 52 00:02:51,880 --> 00:02:56,520 Speaker 1: So let's start off with the cryptocurrency reforms. Your favorite topic, Yeah, 53 00:02:56,680 --> 00:02:59,639 Speaker 1: and the favorite topic of eight hundred thousand Australians who 54 00:02:59,639 --> 00:03:02,960 Speaker 1: currently hold crypto. So at the present moment, crypto assets 55 00:03:02,960 --> 00:03:06,079 Speaker 1: and trading in Australia is mostly unregulated. That is, of course, 56 00:03:06,360 --> 00:03:08,960 Speaker 1: the appeal of cryptocurrency is that it's kind of it's 57 00:03:09,000 --> 00:03:12,120 Speaker 1: off grid. The federal government yesterday, though, made it clear 58 00:03:12,120 --> 00:03:15,520 Speaker 1: that it wants to introduce regulation within the crypto space, 59 00:03:15,760 --> 00:03:19,000 Speaker 1: with the aim of the regulation being to implement protections 60 00:03:19,000 --> 00:03:21,960 Speaker 1: for consumers. I'm sure we've all seen ads for bitcoin 61 00:03:22,040 --> 00:03:24,960 Speaker 1: on bus shelters and it's now moving into that territory 62 00:03:25,000 --> 00:03:27,200 Speaker 1: where a lot of people are being incentivized to invest 63 00:03:27,200 --> 00:03:31,200 Speaker 1: in crypto without fully understanding the financial risks. So this 64 00:03:31,240 --> 00:03:33,960 Speaker 1: is all going to fall under that new licensing framework 65 00:03:34,000 --> 00:03:35,800 Speaker 1: that's going to be part of these twenty twenty two 66 00:03:35,840 --> 00:03:39,080 Speaker 1: discussions that you just mentioned, and it could include advice 67 00:03:39,120 --> 00:03:42,760 Speaker 1: on a potential cryptocurrency taxation policy. We know the ATO 68 00:03:42,920 --> 00:03:45,120 Speaker 1: has had a lot of issues with people not declaring 69 00:03:45,200 --> 00:03:48,240 Speaker 1: their crypto income as tax and they've done a big campaign, 70 00:03:48,360 --> 00:03:51,320 Speaker 1: especially trying to educate young Australians on the fact that 71 00:03:51,360 --> 00:03:53,400 Speaker 1: they need to declare their crypto That could be more 72 00:03:53,440 --> 00:03:57,360 Speaker 1: formalized with these reforms. Probably the most important part of 73 00:03:57,360 --> 00:04:00,640 Speaker 1: the announcement though, yesterday, was this talk of a digital currency. 74 00:04:00,680 --> 00:04:03,119 Speaker 1: Now we've seen one in El Salvador and we've seen 75 00:04:03,200 --> 00:04:06,520 Speaker 1: quite advanced discussions about the digital currency in China. 76 00:04:06,960 --> 00:04:07,960 Speaker 2: Explain what that means. 77 00:04:08,080 --> 00:04:12,320 Speaker 1: Basically, it means it's a state endorsed coin. It's different 78 00:04:12,360 --> 00:04:14,720 Speaker 1: to cryptocurrency because you've got to remember that the state 79 00:04:14,800 --> 00:04:17,680 Speaker 1: endorsed coin would actually be regulated. 80 00:04:17,320 --> 00:04:19,760 Speaker 2: So it would take the place of ordinary currency, or 81 00:04:19,760 --> 00:04:22,640 Speaker 2: it would exist alongside the money that you and I use. 82 00:04:22,720 --> 00:04:25,520 Speaker 1: Currently at the moment, the clearest indication we have from 83 00:04:25,520 --> 00:04:28,520 Speaker 1: the Treasurer is that it looks like he would appear alongside. 84 00:04:28,520 --> 00:04:31,480 Speaker 1: In his comments yesterday, he talked about how cash is 85 00:04:31,520 --> 00:04:35,080 Speaker 1: being phased out and that there's no real place anymore 86 00:04:35,120 --> 00:04:37,480 Speaker 1: for hard copy checks, and so the idea would be 87 00:04:37,600 --> 00:04:42,360 Speaker 1: that businesses and individuals could conduct transactions on this digital currency, 88 00:04:42,760 --> 00:04:46,160 Speaker 1: regulated by the RBA and the government in a way 89 00:04:46,200 --> 00:04:48,760 Speaker 1: that is totally digital and paperless. 90 00:04:49,120 --> 00:04:52,520 Speaker 2: If there have been two buzzwords in the finance world, 91 00:04:52,560 --> 00:04:55,440 Speaker 2: it has been crypto and then buy now pay laters. 92 00:04:55,680 --> 00:04:59,520 Speaker 2: The Treasurer also spoke about the BNPL sector. What did 93 00:04:59,520 --> 00:04:59,839 Speaker 2: he say? 94 00:05:00,120 --> 00:05:03,480 Speaker 1: So we know that BNPL transactions account for twenty percent 95 00:05:03,600 --> 00:05:06,599 Speaker 1: of online retail transactions in Australia now and we also 96 00:05:06,680 --> 00:05:09,600 Speaker 1: know that about five million Australians have a by now 97 00:05:09,760 --> 00:05:12,960 Speaker 1: Pay Later account. There's been kind of ups and downs 98 00:05:13,000 --> 00:05:15,760 Speaker 1: in how much these have been the focus of regulation, 99 00:05:16,440 --> 00:05:18,920 Speaker 1: but yesterday the Treasurer said there would be now a 100 00:05:18,960 --> 00:05:22,719 Speaker 1: renewed focus on the reforms to regulate the space. He said, 101 00:05:22,720 --> 00:05:25,359 Speaker 1: they're all great companies, but they all might need to 102 00:05:25,400 --> 00:05:28,120 Speaker 1: stick within the rules a little bit more. It's interesting 103 00:05:28,160 --> 00:05:31,720 Speaker 1: to note here that under our current Payment System Regulation Act, 104 00:05:32,080 --> 00:05:35,479 Speaker 1: things like Apple Pay, Google Pay, After Pay and Zip 105 00:05:35,560 --> 00:05:38,880 Speaker 1: don't actually fall under those laws. That's why it's difficult 106 00:05:38,920 --> 00:05:42,160 Speaker 1: for regulators to have oversight. Here's what the Treasurer had 107 00:05:42,200 --> 00:05:44,680 Speaker 1: to say about digital wallets and how they could fit 108 00:05:44,720 --> 00:05:45,919 Speaker 1: in with buy now pay lads. 109 00:05:46,160 --> 00:05:48,599 Speaker 3: Well, there's nothing wrong with them. In fact, they're providing 110 00:05:48,640 --> 00:05:53,160 Speaker 3: more consumer choice and easier forms of payment, but they're 111 00:05:53,200 --> 00:05:56,200 Speaker 3: not all regulated and that means they may not have 112 00:05:56,240 --> 00:05:58,359 Speaker 3: the appropriate transparency around fees. 113 00:05:58,560 --> 00:06:00,880 Speaker 2: When you say digital wallets, what do you mean by that. 114 00:06:01,200 --> 00:06:03,520 Speaker 1: The best way to think about digital wallets is navigating 115 00:06:03,520 --> 00:06:05,760 Speaker 1: the app store on your mobile phone. It's kind of 116 00:06:05,800 --> 00:06:08,800 Speaker 1: the way that Apple can retain your payment information and 117 00:06:08,839 --> 00:06:11,760 Speaker 1: you can pay on your phone through your Apple Idea account. 118 00:06:12,040 --> 00:06:15,839 Speaker 1: So like Apple Pay exactly, those transactions don't actually touch 119 00:06:15,960 --> 00:06:19,720 Speaker 1: Australian jurisdictions. They're not taxed and they're not regulated by 120 00:06:19,760 --> 00:06:22,279 Speaker 1: the government. That was what a big dispute with Apple 121 00:06:22,440 --> 00:06:23,839 Speaker 1: was about earlier this year. 122 00:06:24,160 --> 00:06:29,160 Speaker 2: Of course, this digital finance space is revolutionizing itself across 123 00:06:29,160 --> 00:06:31,479 Speaker 2: the world. What are we seeing in other countries you 124 00:06:31,560 --> 00:06:34,039 Speaker 2: mentioned El Salvador. What can we see from the rest 125 00:06:34,040 --> 00:06:34,479 Speaker 2: of the world. 126 00:06:34,680 --> 00:06:38,080 Speaker 1: The announcements from the Treasurer yesterday are quite in line 127 00:06:38,160 --> 00:06:40,480 Speaker 1: with what we've seen in the US. The US has 128 00:06:40,520 --> 00:06:44,400 Speaker 1: previously said it is looking into establishing the similar regulatory 129 00:06:44,440 --> 00:06:48,080 Speaker 1: frameworks that would allow banks to facilitate the ownership of 130 00:06:48,080 --> 00:06:51,599 Speaker 1: crypto assets for customers. To break that down into kind 131 00:06:51,600 --> 00:06:55,120 Speaker 1: of more easy to understand talk, the theory is that 132 00:06:55,160 --> 00:06:58,320 Speaker 1: the first step to regulating cryptocurrency is to allow you 133 00:06:58,360 --> 00:07:00,839 Speaker 1: and I to hold it in our own bank accounts, 134 00:07:00,839 --> 00:07:04,360 Speaker 1: our regular bank accounts, instead of crypto only bank accounts. 135 00:07:04,800 --> 00:07:08,280 Speaker 1: We've seen similar regulation in the UK in the crypto space. 136 00:07:08,880 --> 00:07:12,520 Speaker 1: They've actually focused in on the online promotion of crypto assets, 137 00:07:12,720 --> 00:07:14,920 Speaker 1: and I think that's a really interesting space, especially for 138 00:07:15,000 --> 00:07:17,560 Speaker 1: young Australians who I don't know about you, but we 139 00:07:17,640 --> 00:07:21,160 Speaker 1: are absolutely bombarded with crypto ads as we go about 140 00:07:21,160 --> 00:07:25,240 Speaker 1: our business online. However, some countries are really focused on 141 00:07:25,400 --> 00:07:29,160 Speaker 1: cracking down as soon as possible. We have examples in 142 00:07:29,280 --> 00:07:33,280 Speaker 1: China where there's quite severe penalties on crypto transactions and 143 00:07:33,320 --> 00:07:37,120 Speaker 1: mining and the misuse of those transactions and similar penalties 144 00:07:37,160 --> 00:07:40,040 Speaker 1: in India where laws have actually been proposed where anyone 145 00:07:40,160 --> 00:07:43,360 Speaker 1: using crypto as a payment would be arrested without a warrant. 146 00:07:44,200 --> 00:07:47,160 Speaker 2: Honestly, if like me, it takes a while to get 147 00:07:47,160 --> 00:07:49,760 Speaker 2: your head around these concepts, let us know what we 148 00:07:49,800 --> 00:07:52,920 Speaker 2: can do in helping to break down some of those barriers. 149 00:07:53,000 --> 00:07:55,400 Speaker 2: It's certainly the way of the future. We can see 150 00:07:55,400 --> 00:08:00,000 Speaker 2: people around us investing in these types of financial products 151 00:07:59,720 --> 00:08:02,200 Speaker 2: and certainly caught the eye of the government and will 152 00:08:02,240 --> 00:08:06,080 Speaker 2: be a major agenda item for whichever government is voted 153 00:08:06,080 --> 00:08:09,400 Speaker 2: in at the next federal election. That is all we 154 00:08:09,520 --> 00:08:11,400 Speaker 2: have time for today on the Daily OZ. Thank you 155 00:08:11,440 --> 00:08:14,040 Speaker 2: for joining us today and every other day. If you 156 00:08:14,160 --> 00:08:18,040 Speaker 2: are enjoying the podcast, please follow us on whatever platform 157 00:08:18,320 --> 00:08:22,040 Speaker 2: you are listening to us on currently. As an independent 158 00:08:22,080 --> 00:08:25,080 Speaker 2: media publisher, it really helps us grow and your support 159 00:08:25,160 --> 00:08:28,040 Speaker 2: means everything to us. Have an excellent Thursday.