PETER STEFANOVIC:
Treasurer, good to see you, as always. So, this can be very complicated, particularly cryptocurrencies, for people to understand. But I read this morning that you’re basically trying to fix the plumbing of the payments system. So very simply, what do the reforms mean for those big international companies, the big tech companies, the buy now pay later companies?
JOSH FRYDENBERG:
Well, Pete, as your viewers would understand, there is a digital revolution occurring in our financial system. Cheques are nearly gone, cash is in decline, buy now pay later, digital wallets and, indeed, digital currencies are fast becoming the new normal. And our regulatory framework hasn’t kept pace with that change. Every single day in Australia there are 55 million non-cash transactions worth some $650 billion, and over 800,000 Australians have owned a cryptocurrency. And we know that there are around 5 million-plus accounts for buy now pay later services. So what we’re doing is three major reforms. Firstly, we’re modernising the payment system so that the types of services and products can be brought out of the shadows and into a regulated framework. That will boost competition. That will get more transparency around fees and also will encourage innovation. The second thing we’re doing when it comes to cryptocurrencies is we’re going to license those businesses that buy and sell cryptocurrencies because we want people to have confidence that the areas in which they’re transacting, they’re doing so with reputable players, and that’s why the licensing framework is important. And finally, what we’re going to look into is a Reserve Bank, with the Reserve Bank, a centralised digital currency. And, again, that would be world leading if Australia was to go down that path. And we’re going to follow that up with the Reserve Bank.
PETER STEFANOVIC:
Okay, fixing the plumbing. I thought that was a pretty good way to put it, actually. But, anyway, we’ve got a few issues to move through here, Treasurer. I do want to ask you about George Christensen. He’s been scalded for his appearance with far-right conspiracy theorist Alex Jones, in which he laughed at Auschwitz comparisons with our quarantine system. First of all, what was your reaction to that?
JOSH FRYDENBERG:
Horrified. Shocking. There’s no legitimate analogy between the events of the Holocaust and what has happened during COVID, whether it’s lockdowns, mandatory vaccinations in some specific areas or, indeed, quarantine. It shows an insensitivity, a lack of understanding of history and, of course, they’re false and wrong comparisons. I spoke to George yesterday and he did apologise to me. And we’re all better than this. We’re all, and should be, more focused on understanding that there is no legitimate analogies between the events of the Holocaust and what has taken place during COVID.
PETER STEFANOVIC:
I mean, it’s not the first time that, you know, he’s kicked up a hornet’s nest and got himself into trouble and brought criticism to himself and, therefore, your own party. I mean, you can’t control him, can you?
JOSH FRYDENBERG:
Well, he’s responsible for his own comments, but they have been criticised and condemned by the Prime Minister, the Deputy Prime Minister, myself, David Littleproud the Deputy Leader of the National Party and others. Everyone can see how wrong these comments really are.
PETER STEFANOVIC:
Will Australia follow the US with a diplomatic boycott of the Beijing winter games?
JOSH FRYDENBERG:
Well, we obviously have noted what the United States have done. We’ve had some preliminary discussions internally about what we will do with respect to the games. And I’ll leave any formal decisions and announcements to the Prime Minister. But we are working through those issues.
PETER STEFANOVIC:
Does AUKUS mean that we’ve got to follow the US on this instance, though?
JOSH FRYDENBERG:
We’re a sovereign country, we make our own decisions about major issues or events such as the Olympics. And we’ll consider what’s in Australia’s national interests and make that decision accordingly, Pete.
PETER STEFANOVIC:
Okay. And just finally, I read that you’re the one who’s been leading the charge to try and get Gladys Berejiklian on board to run in the seat of Warringah. Are you having any progress there?
JOSH FRYDENBERG:
Well, I think there’s been, you know, lots of people on our side of politics who have privately and publicly made it very clear that she would be a great addition to our team. But ultimately that is a decision for her and her alone. And we do note that she’s incredibly popular. She was a very strong and capable leader of New South Wales, and I hope that her career in public life is far from over.
PETER STEFANOVIC:
Are you making progress in your discussions?
JOSH FRYDENBERG:
Again, I’m not going to delve into the details with you other than to say I think Gladys is well aware that she would be warmly received in Canberra. But that decision is really a matter for her.
PETER STEFANOVIC:
Treasurer Josh Frydenberg, thanks for your time.