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Highlights
- Rest Super unveils plan to use a small share of the $66 billion in cryptocurrencies.
- The Australian Government has adopted a hands-off approach as far as regulation of Cryptocurrency is concerned.
The future is digital, and cryptocurrency, also known as virtual currency, has become a hot topic these days. As Cryptocurrencies are gaining popularity across the globe, more and more companies are showing interest in the digital currency. In the latest development, Australian industry superannuation fund Retail Employees Superannuation Trust (Rest Super) has indicated that the company will use a small share of the $66 billion it handles on behalf of primarily Millennial and Gen Z retail workers to cryptocurrencies. This came just a day after fellow industry fund AustralianSuper ruled out such a move.
On Tuesday, in its annual general meeting, chief investment officer Andrew Lill apprised the members that the Fund had plans to invest in crypto assets while adding that the Fund would spend cautiously in the nascent market. Dubbing it as a volatile investment, Lill was quoted as saying that any allocation exposure to cryptocurrencies is likely to be part of the Fund’s diversified portfolio.
According to a media report, it is believed that Rest is considering cryptocurrencies to diversify its members' retirement savings; however, there are no immediate future investment plans.
Nonetheless, the latest development has come as traditional funds' management industry players are increasingly expected to take a stand on the legality of crypto assets, which are now worth around $US2.6 trillion globally.
How is Cryptocurrency regulated?
Though Cryptocurrency is often criticised for promoting money laundering activities and other crimes, the federal government has so far adopted a hands-off approach when it comes to the regulation of virtual currency.
Cryptocurrencies like bitcoin, ether, binance and tether constitute private digital currencies that do not have a physical form and pose a significant challenge to the traditional banking systems and fiat currency.
Recently, AustralianSuper chief executive Paul Schroder had reportedly stated that the $233 billion industry fund was not keen on investing in cryptocurrency since it does not create an income stream.
