  Crypto-currencies like Bitcoins are relatively recent phenomena on the online
Internet landscape and an emerging force in the financial sector. While not
conforming to traditional institutional practices, they are gaining increasing
acceptance as viable commercial currencies. In this conceptual paper we discuss
the potential impact of digital currency technology on the Australian economy,
including the (i) payments sector, (ii) retail sector, and (iii) banking
sector; and explore potential ways in which Australia can take advantage of
digital currency technology to establish itself as a market leader in this
field. The emergence of this new and potentially disruptive technology provides
both opportunities as well as risks. In order to support innovation and the
needs of the growing Australian digital currency industry it is important to
define digital currencies and examine the impact regulatory frameworks could
have on the further adoption and diffusion of the technology.
