In brief
- Responding to a sarcastic prompt on X, Australian Senator Gerard Rennick called Bitcoin a “Ponzi scheme” driven by asset managers such as BlackRock.
- Critics, including the Australian Bitcoin Industry Body, said his comments were “misinformed” and could lead to damaging policy.
- The clash came as Australia’s Labor government prepares crypto legislation under its post-election mandate.
Bitcoin (BTC) may be gaining momentum globally, but in Australia, it’s also attracting political ire.
On May 23, Senator Gerard Rennick dismissed Bitcoin as a “Ponzi scheme,” sparking immediate backlash from crypto industry groups and users alike.
“Bitcoin will ultimately go to a $1 million dollars. Why? Because it’s a Ponzi scheme whereby BlackRock will pump more and more dollars into a supply-constrained product,” Rennick tweeted in response to a user who sarcastically asked for his “special comments” on the topic.
“You can’t eat Bitcoin,” the Senator added.
The Queensland senator, who now leads the populist People First Party after leaving the Liberal National Party in 2024, went on to argue that Bitcoin and its traders contribute “absolutely nothing” in terms of real-world utility.
“Australia needs real engineers, not financial engineers,” he said. “We need infrastructure that’s [sic] delivers essential services particularly energy, water and transport.”
Bitcoiners and industry advocates fired back immediately to the Senator’s comments.
The Australian Bitcoin Industry Body (ABIB) dismissed Rennick’s remarks as “a deep misunderstanding,” warning that “misinformed” takes from public officials could lead to “bad policy.”
“This isn’t about whether Australians can use Bitcoin—we already do,” ABIB said in its response. “This is about whether our government is capable of understanding how Bitcoin can enrich the nation… The door is open for ongoing education. The question is: are you willing to walk through it?”
As the thread gained traction, the Senator brushed off criticism, saying “You’re disappointed about what a politician thinks about Bitcoin? Seriously? I thought you wanted less political interference. Why does it matter what I think? Invest as you will.”
Bitcoin and Australia
Rennick’s remarks followed Bitcoin’s recent surge to an all-time high above $111,000 and came just two weeks after Andrew Charlton was named Assistant Minister for Science, Technology, and the Digital Economy by Prime Minister Anthony Albanese.
Charlton is expected to lead Australia’s digital asset reform push, including a licensing regime that would bring major exchanges under the Australian Financial Services Licence (AFSL) framework with draft legislation due later this year.
The government also plans to introduce safeguards against debanking and align the framework with global standards like the EU’s MiCA and Singapore’s Payment Services Act.
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