As Bitcoin pushes past the $111,000 mark and institutional inflows surge globally, Australian Senator Gerard Rennick has ignited controversy by branding the asset a “Ponzi scheme.” The comment, made on May 23 via social media, drew swift backlash from crypto industry advocates who viewed the statement as both inflammatory and misinformed.
“Bitcoin will ultimately go to a million dollars. Why? Because it’s a Ponzi scheme whereby BlackRock will pump more and more dollars into a supply-constrained product,” Rennick posted in response to a user’s tongue-in-cheek prompt for his take on the digital currency.
He added,
“You can’t eat Bitcoin,” suggesting that the asset lacks real-world value or utility.
Rennick’s comments come at a critical moment for Australia’s crypto sector. The government is currently crafting regulatory frameworks that could shape the country’s approach to digital assets for years to come. Industry voices were quick to criticize the senator’s remarks, warning that such sentiment—especially from elected officials—risks undermining the nation’s position in a rapidly growing global market.
While some critics highlighted the irony of calling Bitcoin a Ponzi while simultaneously criticizing centralized financial institutions, Rennick stood by his post, doubling down on his view that digital assets represent financial engineering without real productivity.
Rennick Attacks Crypto’s Place in the Economy
The Queensland senator took his argument further, stating that Australia needs “real engineers” to build infrastructure—like water systems, transport, and energy—not “financial engineers” focused on digital assets.
Rennick’s remarks were met with swift pushback from across the crypto community, particularly from the Australian Bitcoin Industry Body (ABIB). In a formal statement, the organization accused the senator of having a “deep misunderstanding” of how Bitcoin functions and warned that such “misinformed” perspectives from elected officials risk shaping poor regulatory outcomes.
“This isn’t about whether Australians can use Bitcoin—we already do,” the ABIB said.
“The real issue is whether our government understands how Bitcoin can contribute to national prosperity. The door is open for education; the question is whether policymakers are willing to walk through it.”
Despite the backlash, Rennick appeared unfazed. “You’re disappointed about what a politician thinks about Bitcoin? Seriously?” he replied in a follow-up post. “I thought you wanted less political interference. Why does it matter what I think? Invest as you will.”
The exchange comes at a sensitive time as Australia works toward building its digital asset regulatory framework.
Lawmakers Push Toward Crypto Licensing Reform
Senator Gerard Rennick’s criticism of Bitcoin came just days after the cryptocurrency broke through a new all-time high above $111,000—fueling both market excitement and political division in Australia. His comments also arrive at a pivotal moment for the country’s digital asset policy, as lawmakers gear up for significant regulatory reforms.
Earlier this month, Prime Minister Anthony Albanese appointed Andrew Charlton as Assistant Minister for Science, Technology, and the Digital Economy. Charlton is now expected to take the lead on shaping Australia’s long-awaited crypto framework, with a licensing regime set to bring major digital asset platforms under the oversight of the Australian Financial Services Licence (AFSL) structure.
The draft legislation, due later this year, is part of a broader strategy to align Australia’s crypto regulation with leading international standards, including Europe’s MiCA framework and Singapore’s Payment Services Act. In addition to licensing rules, the government is also planning to introduce protections against “debanking,” ensuring crypto businesses have fair access to banking services.
Quick Facts
- Australian Senator Gerard Rennick called Bitcoin a “Ponzi scheme”
- Bitcoin surpassed $111,000 shortly before his remarks
- Crypto community criticized Rennick’s views as misinformed
- Australia is preparing a licensing regime for digital assets
- New legislation aims to align with global crypto frameworks
