Cryptocurrencies do not pose a threat to the dollar

<p>According to a Reserve Bank official, cryptocurrencies pose no threat to the Australian dollar or the central bank's operations.</p> <p>Tony Richards, the RBA's head of payments policy, has similarly questioned the extent to which cryptocurrencies are kept in Australia, but admits to holding his own cryptocurrency wallet.</p> <p>He told a Thursday online conference that while cryptocurrencies have garnered widespread attention, they are not commonly used in Australia.</p> <p>"I do not believe they constitute a threat to the Australian currency, our monetary sovereignty, or the Reserve Bank's ability to conduct monetary policy," Dr Richards told the Australian Corporate Treasury Association.</p> <p>"I don't see shops publishing prices in cryptocurrencies, businesses issuing annual reports in cryptocurrencies, or a large number of people requesting payment in cryptocurrencies."</p> <p>He said, however, that a diverse variety of investors - from individuals to hedge funds - feel cryptocurrencies have an important role to play.</p> <p>"At the same time, a sizable portion of the global official sector remains sceptical about bitcoin market movements," Dr Richards stated.</p> <p>He noted that the recent cryptocurrency bubble is best exemplified by the fact that Dogecoin - "a cryptocurrency that was created as a joke in late 2013" - had an inferred market value of up to $US88 billion in June of this year.</p> <p>Although it has now decreased to roughly $US31 billion, it remains the ninth largest cryptocurrency in terms of market value.</p> <p>"While cryptocurrencies have undoubtedly attracted the interest of many, no doubt aided by influencers and celebrity tweets," Dr Richards said.</p> <p>According to him, some surveys indicate that almost 20% of the Australian population owns cryptocurrencies, while another indicates that 5% of the nation owns Dogecoin alone.</p> <p>However, he deemed such conclusions improbable because online surveys omit significant sectors of the population, most notably elderly adul