Australia’s 40‑Year Outlook Highlights AI, Leaves Crypto to Separate Policy

Australia’s Treasury released its seventh Intergenerational Report, outlining five major transitions that will shape the economy through 2065‑66. Artificial intelligence (AI) received a dedicated focus, whereas digital assets such as crypto, stablecoins and tokenized finance were omitted from the headline themes.

AI Positioned as a Core Economic Driver

The report identifies AI as one of five long‑term transitions, alongside geopolitical fragmentation, the energy transition, population ageing and a shift toward a services‑based economy. Treasury describes “agentic” AI systems as increasingly autonomous and capable of performing tasks with minimal human input. The Treasury retains a long‑run productivity assumption of 1.2% per year but notes that AI could alter productivity, investment and labour‑market outcomes in ways that are difficult to quantify.

Crypto and Digital Assets Addressed Separately

Although crypto does not appear among the five transitions, the government released a Financial Innovation Strategy on 3 September that explicitly covers digital assets, stablecoins, tokenisation and AI‑enabled financial services. The strategy outlines a licensing framework for digital‑asset platforms and tokenised custody providers, set to commence on 9 April 2027, and proposes regulation of payment stablecoins as tokenised stored‑value facilities.

Linking AI Agents to Payment Infrastructure

The Financial Innovation Strategy connects AI agents with the need for real‑time, interoperable and programmable payment systems. Treasury cautions that fully autonomous financial agents remain experimental and are not yet reliable for mainstream financial applications.

Reserve Bank of Australia’s Tokenised‑Finance Work

The RBA, together with the Digital Finance Cooperative Research Centre, completed Project Acacia, testing 20 wholesale tokenised‑asset use cases involving central‑bank balances, a pilot wholesale CBDC, commercial‑bank deposit tokens and stablecoins. Findings highlighted potential efficiency and resilience benefits, while flagging legal, settlement and regulatory questions.

Economic Impact Estimates

Research by the Digital Finance Cooperative Research Centre estimates that full adoption of digital finance could generate up to A$24 billion in annual economic gains for Australia. This figure covers tokenised real‑world assets, payments and other digital‑finance applications and is a modeled projection.

Regulatory Outlook

The RBA opened a consultation on extending its Reserve Bank Information and Transfer System and Fast Settlement Service to support tokenised markets, with a submission deadline of 30 October 2026. The government’s Financial Innovation Strategy also plans a digital financial market‑infrastructure sandbox for the second half of 2027.