Reserve Bank of Australia Comments on Cryptocurrency, Labor Market Resilience

ASIC Chair Dismisses Crypto Rally

Joe Longo, chair of ASIC, has criticized the recent surge in bitcoin and other cryptocurrencies, labeling it as an example of the “bigger fool theory.” According to Longo, the concept suggests that individuals can profit from overvalued assets by selling them to a larger “fool” at a higher price.

RBA Studies Payment System and Labor Market

The Reserve Bank of Australia’s recent research revealed that cryptocurrencies are not widely used for traditional payments, with only 2% of respondents making cryptocurrency transactions in the past year. On a separate note, the Australian Bureau of Statistics reported a steady unemployment rate of 4.1% in October, with the economy adding 15,900 jobs.

Labor Market Resilience and Monetary Policy

Treasurer Jim Chalmers highlighted the stability of the labor market despite softer employment growth. Wages are rising, inflation is falling, and over a million jobs have been created under the current government. Economists predict a potential cash rate cut by the RBA in the coming year due to declining inflation and expected labor market softening.