A number of countries are choosing to have an economy of cashless payments. Among those spearheading this is Australia. The country is reportedly planning to limit the use of cash in the country to 10,000 AUD around $6,900. This new development could be positive for Bitcoin.
The country is already a leading adopter of the technology making the asset ideal for day to day use. Apart from Australia, Spain, Portugal and France are also looking to limit the use of cash. So, is this a growing trend and how will Bitcoin benefit from it?
The new bill in Australia was recommended by a special task force looking into curbing tax evasion and general criminal activity. The recommendation was pushed to parliament and was first tabled in the 2018-19 Budget Review.
This push for a cashless economy through government regulation now makes a strong bullish case for Bitcoin. Bitcoin is an excellent digital asset that can be used as a medium of exchange. Residents of countries with limited use of cash can easily use the asset in their day to day expenses. Furthermore, it helps that a lot of stores are now accepting the asset as a means of payment.
Bitcoin will in the years to come have a larger user base meaning its demand will be higher. This will see its price push higher than before.
Regulation For Digital Assets Possible
However, if the government is planning to regulate cash, it is most likely also going after digital assets such as Bitcoin. It’s plausible that while they implement the new regulation, they set up more regulation for digital assets in an attempt to reduce their use for illegal activities.
Regardless, regulations have been welcomed by analysts who believe that this will see institutional investors trust the new technology.
Bitcoin (BTC) Price Update
Bitcoin has largely been trading sideways as it continues to trade just above $9,500. It is expected that the asset will trade around this region for some time before the next big jump back above $10K in the mid-term. In the long term, the bulls are looking to top the year high of $13K.