New technologies like the blockchain can release values. Australia is considering regulatory reforms to drive the industry forward
A recent report by the New South Wales Treasury Department outlines how an outdated legal framework can lead to overlook the benefits of disruptive technologies such as blockchain. The report calls for reforms to help blockchain help the Australian economy. In a traditional regulatory model, new laws and regulations are implemented on a prescribed basis. However, new technologies such as autonomous vehicles, AI and especially the blockchain have a constantly evolving cycle of product development. Therefore, regulators should prescribe new regulations at a pace that matches the pace of technological progress. However, they are currently lagging behind in relation to the so-called “stimulation problem”.
The answer is reform
The paper suggests that by moving to a results-based legal framework, companies can freely adopt, implement, and experiment with any technology that could lead to a desired outcome. A comprehensive regulatory reform could exploit the maximum potential of current and future disruptive technologies. This regulatory philosophy creates competitive conditions in which companies can continue to innovate and create additional competition to advance the technology sector. The report notes that small adjustments to the framework could bring huge benefits to the economy. A 5% reduction in compliance fees could result in a net benefit of $ 600 million to $ 4 billion ($ 430 million to $ 2.86 billion).Reform could also accelerate innovation. This enables companies to save valuable time without having to rely on the approval of the supervisory authorities. The paper concludes with the suggestion that reforming during the blockade in Covid-19, where businesses close and more people are unemployed, could accelerate the economic recovery after the pandemic.