Donald Trump's re-election sent the value of bitcoin soaring
AFP

As U.S. President Donald Trump announces five digital currencies for the country's crypto reserve, the Australian government confirms it has no plans to create a similar stockpile.

A spokesperson for Assistant Treasurer and Financial Services Minister Stephen Jones emphasized the government's commitment to regulating digital and crypto platforms, but clarified that there were no current plans for a crypto reserve in Australia.

Instead, the Labor Party's focus remains on regulating digital asset platforms, reported Sky News.

"The Albanese government has consulted on our proposed framework to build a fit-for-purpose digital asset regulatory regime, and we continue to work closely with industry," the spokesperson said.

Cryptocurrencies experienced a sharp rise in value on Monday following President Trump's announcement that five major digital currencies -- Ripple (XRP), Solana (SOL), Cardano (ADA), along with the well-known Bitcoin and Ethereum -- will be included in the newly created U.S. Crypto Reserve.

"A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration," Trump stated.

Trump's latest announcement sparked a surge in the prices of various cryptocurrencies. Solana (SOL) saw a nearly 20% increase, Cardano (ADA) surged by over 63%, and Ripple (XRP) gained nearly 28%. Bitcoin and Ethereum also experienced increases of 8% and 11%, respectively.

Before the surge on Monday, Bitcoin had its worst month since June 2022, despite an initial rise following Trump's election win.

Experts criticize move

Meanwhile, Caroline Bowler, the CEO of BTC Markets, an Australian cryptocurrency exchange, criticized the proposal to create a crypto reserve. She expressed concerns about the potential for government intervention in the digital currency market.

"One of the core principles of cryptocurrency is its ability to exist outside of government influence," Bowler urged. "However, if major assets are increasingly tied to specific jurisdictions, it could lead to a concentration of power that contradicts the foundational ethos of crypto."

Earlier this year, Trump signed an executive order exploring the creation of a national cryptocurrency stockpile, while also ensuring banking services for crypto companies would be safeguarded.

The U.S. president has garnered significant support from the cryptocurrency industry during his 2024 campaign and has swiftly aligned with their policy goals.

He is also set to host the inaugural White House Crypto Summit this Friday.

Under the previous Joe Biden administration, U.S. regulators had taken a more cautious approach toward digital currencies, focusing on protecting Americans from fraud and illegal activities.

However, since Trump's tenure began, the U.S. Securities and Exchange Commission has eased its stance, halting investigations into several crypto firms and dropping a lawsuit against Coinbase, one of the largest cryptocurrency exchanges in the country.