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Australians are increasingly turning to crypto to bolster their retirement portfolios. Although many have been skeptical of investing in cryptocurrencies, self-managed super funds (SMSFs) have marked a staggering 400% surge in allocations to digital assets over the past four years. 
As of September, the Australian Tax Office (ATO) reports that, approximately 612,000 SMSFs collectively hold a substantial $658.6 million (992 million Australian dollars) in cryptocurrencies. 
Danny Talwar, head of tax at Koinly, dubbed crypto as the “largest growing asset class in SMSFs.” Crypto still outpaced traditional investments like listed shares (which only grew by 28%) despite witnessing a 0.8% dip from the June 2023 quarter. However, it’s worth noting that the crypto allocation within SMSFs has decreased by 38% since the all-time high in June 2021. Caution to be exercised 
Talwar cautions that despite the surge in crypto adoption, compliance to superannuation laws is crucial. “Your SMSF strategy must allow you to hold crypto,” he said while highlighting the need for clear distinction between personal and SMSF holdings. 
Interestingly, despite the surge, crypto constitutes only 0.1% of total net assets in Australian SMSFs. Smaller-sized funds have a greater affinity for digital assets. crypto exchanges increasingly offering superannuation products as the local crypto scene started responding to this trend. Australia’s Crypto wallet adoption 
Recently, Brad Jones, Assistant Governor (Financial System) at the Reserve Bank of Australia (RBA) <a href="https://news.todayq.com/australias-central-bank-predicts-cbdcs-and-tokenization-as-future-of-finance/">spoke</a> about a digital future for finance. He said that Central Bank Digital Currencies (CBDCs) and tokenization will play a pivotal role by revolutionizing digital transactions. The RBA has already completed a <a href="https://news.todayq.com/australias-cbdc-pilot-highlights-strong-payment-and-tokenization-potential/">CBDC pilot program</a> to explore its potential applications. 
The official highlighted the transformative potential of CBDCs. He implied that CBDCs will enable seamless transactions through the transfer of exchange-settled or wholesale CBDC balances between payer and payee banks. <a href="https://news.todayq.com/cbdcs-can-replace-cash-says-international-monetary-funds-md/">CBDCs</a> are poised to be instrumental in Australia’s broader digital transformation of financial systems. 
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Crypto allocation increases by 400% in Australia’s self managed super funds

Todayq News

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