Joint Submission on RBA Review of Surcharging
The Australian Bitcoin Industry Body (ABIB) and Bitcoin Policy Australia have jointly called on the Reserve Bank of Australia (RBA) to address inefficiencies in the current payment systems by embracing Bitcoin as a low-cost, cash-like digital payment solution. This comes in response to the RBA’s Review of Merchant Card Payment Costs and Surcharging and highlights Bitcoin’s potential to foster competition, reduce merchant fees, and modernise Australia’s payments ecosystem.
ABIB and Bitcoin Policy Australia stress the strategic importance of Bitcoin’s transformative capabilities, advocating for regulatory adjustments to enable broader adoption of its cost-efficient and decentralised payment infrastructure. The organisations reaffirm their commitment to collaborating with policymakers to enhance understanding of Bitcoin’s role in delivering economic efficiency and fostering innovation in Australia’s financial landscape.
Media Release
For Immediate Release
December 3, 2024
Contact: Bayani Mills, CEO, Australian Bitcoin Industry Body
Email: media@bitcoinindustrybody.org.au
Website: www.bitcoinindustrybody.org.au
For more details on the RBA review, visit RBA Media Release.
ABIB and Bitcoin Policy Australia Submit Joint Response to RBA’s Review of Merchant Card Payment Costs and Surcharging
The Australian Bitcoin Industry Body (ABIB) and Bitcoin Policy Australia have jointly submitted their response to the Reserve Bank of Australia (RBA)’s Review of Merchant Card Payment Costs and Surcharging. The review addresses critical questions about promoting competition, enhancing efficiency, and assessing the suitability of the current surcharging framework.
In the submission, our organisations emphasise the need for regulatory measures that reduce merchant costs while fostering innovation in Australia’s payments ecosystem. The core focus is on exploring alternatives to the traditional card payment rails that rely on ad valorem fee structures and create financial burdens for merchants and consumers alike.
Key Highlights of the Submission:
- The Challenge of Card Surcharges:
The current digital payment ecosystem imposes substantial costs, particularly on small-value transactions. Consumers bear the brunt of surcharges, which often do not align with the low marginal costs of digital payment processing. - Bitcoin as a Competitive Alternative:
Bitcoin and the Lightning Network, with their low-cost, capital-light, and digitally-native structures, offer a transformative solution. These technologies enable instant settlement and mimic the characteristics of cash in a digital environment, making them well-suited to address the inefficiencies identified by the RBA. - Regulatory Recommendations:
ABIB and Bitcoin Policy Australia propose a pathway for fostering competition by:- Encouraging transparency and consumer sovereignty in payment options.
- Supporting the adoption of Bitcoin and its second-layer solutions for low-cost, fee-free transactions.
- Introducing minor legislative changes to the tax and AML/CTF frameworks to enable broader Bitcoin adoption for personal use.
- Global Context and Local Opportunities:
Drawing on international precedents, including developments in El Salvador, Japan, and Switzerland, the submission highlights how Bitcoin adoption can lower costs, promote innovation, and strengthen Australia’s position in the global digital economy.
A Vision for the Future:
ABIB CEO Bayani Mills and Bitcoin Policy Australia Director Ashley Porter expressed optimism about the potential for change. “This review represents an opportunity for Australia to lead in payment innovation, leveraging Bitcoin’s global network to reduce costs to banks and consumers, enhance competition, and provide consumers with cash-like payment experiences in a digital format,” said Mills.
Next Steps:
ABIB and Bitcoin Policy Australia remain committed to engaging with the RBA and other stakeholders to advance discussions on fostering competition and delivering better outcomes for Australian merchants and consumers.
About the Australian Bitcoin Industry Body
The Australian Bitcoin Industry Body (ABIB) is a bitcoin-only organisation committed to advancing Bitcoin in Australia. ABIB represents the interests of the growing Australian Bitcoin industry and the increasing number of businesses and individuals using Bitcoin. Through advocacy, education, and community engagement, ABIB aims to promote a free, open, and inclusive financial future for all Australians.
For further inquiries or interview requests, please contact:
Bayani Mills
Email: media@bitcoinindustrybody.org.au
Phone: +61 424 725 603
