Briefly
Responding to a sarcastic immediate on X, Australian Senator Gerard Rennick referred to as Bitcoin a “Ponzi scheme” pushed by asset managers reminiscent of BlackRock.
Critics, together with the Australian Bitcoin Business Physique, mentioned his feedback have been “misinformed” and will result in damaging coverage.
The conflict got here as Australia’s Labor authorities prepares crypto laws underneath its post-election mandate.
Bitcoin (BTC) could also be gaining momentum globally, however in Australia, it’s additionally attracting political ire.
On Might 23, Senator Gerard Rennick dismissed Bitcoin as a “Ponzi scheme,” sparking speedy backlash from crypto trade teams and customers alike.
“Bitcoin will finally go to a $1 million {dollars}. Why? As a result of it’s a Ponzi scheme whereby BlackRock will pump an increasing number of {dollars} right into a supply-constrained product,” Rennick tweeted in response to a consumer who sarcastically requested for his “particular feedback” on the subject.
“You may’t eat Bitcoin,” the Senator added.
The Queensland senator, who now leads the populist Folks First Get together after leaving the Liberal Nationwide Get together in 2024, went on to argue that Bitcoin and its merchants contribute “completely nothing” when it comes to real-world utility.
“Australia wants actual engineers, not monetary engineers,” he mentioned. “We want infrastructure that’s [sic] delivers important providers significantly power, water and transport.”
Bitcoiners and trade advocates fired again instantly to the Senator’s feedback.
The Australian Bitcoin Business Physique (ABIB) dismissed Rennick’s remarks as “a deep misunderstanding,” warning that “misinformed” takes from public officers may result in “dangerous coverage.”
“This isn’t about whether or not Australians can use Bitcoin—we already do,” ABIB mentioned in its response. “That is about whether or not our authorities is able to understanding how Bitcoin can enrich the nation… The door is open for ongoing training. The query is: are you keen to stroll by means of it?”
Because the thread gained traction, the Senator dismissed criticism, saying “You’re disillusioned about what a politician thinks about Bitcoin? Significantly? I believed you wished much less political interference. Why does it matter what I feel? Make investments as you’ll.”
Bitcoin and Australia
Rennick’s remarks adopted Bitcoin’s current surge to an all-time excessive above $111,000 and got here simply two weeks after Andrew Charlton was named Assistant Minister for Science, Expertise, and the Digital Financial system by Prime Minister Anthony Albanese.
Charlton is predicted to guide Australia’s digital asset reform push, together with a licensing regime that may convey main exchanges underneath the Australian Monetary Companies Licence (AFSL) framework with draft laws due later this 12 months.
The federal government additionally plans to introduce safeguards in opposition to debanking and align the framework with world requirements just like the EU’s MiCA and Singapore’s Fee Companies Act.
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