---
title: "What does the blockchain mean for government? Cryptocurrencies in the Australian payments system"
author: "Berg, C.; Davidson, S."
date: "2018-05-01"
url: "https://chrisberg.org/2018/05/what-does-the-blockchain-mean-for-government-cryptocurrencies-in-the-australian-payments-system/"
type: "Submissions and reports"
published_in: "Submissions and reports"
pdf: "https://chrisberg.org/wp-content/uploads/2018/05/BERGDAVIDSONPOTTS_CryptocurrenciesInThePaymentsSystem.pdf"
topics: "Cryptocurrency and digital money, Money and banking"
---

# What does the blockchain mean for government? Cryptocurrencies in the Australian payments system

*With Sinclair Davidson and Jason Potts*

**Executive Summary:** This paper introduces the radical opportunities that the invention of distributed ledger technologies offer for government, using the Australian payments system as a case study. The paper presents a model for the reform of government in light of the blockchain based on the new comparative institutional economics literature. In response to invention of the blockchain, governments should:

- Allow firms to experiment and introduce blockchain enabled services – that is, take “permissionless innovation” approach.
- Adapt regulatory environments to accommodate the use of blockchain applications where those applications cross over existing regulatory requirements – for example, in the space of taxation, and financial and prudential reporting.
- Directly adopt blockchain technologies for delivering government services and to enhance (or replace) existing government processes.

[Available in PDF here.](https://chrisberg.org/wp-content/uploads/2018/05/BERGDAVIDSONPOTTS_CryptocurrenciesInThePaymentsSystem.pdf)