Billions could be lost if the financial world does not embrace new technologies, one peak body has warned.

Bitcoin is here to stay, and the finance industry needs to learn to work with the decentralised digital currency or be left in its wake, according to the Australian Digital Currency Commerce Association (ADCCA).

ADCCA chairman Ronald Tucker has told News Corp reporters that bitcoin operators want several hurdles removed, the largest of which is the Tax Office’s classification of digital currencies as an ‘asset’ rather than ‘money’ or ‘currency’.

“I genuinely think there are billions of dollars at stake here,” Mr Tucker said.

“We stand to gain that in 10 to 50 years time so it’s not something Australia can afford to miss out on.”

The use of bitcoins is on a clear incline in Australia, with Flinders University accepting it as payment for one of its courses, bitcoin ATMs rolling out in Sydney, Melbourne and Canberra and more companies accepting the currency every day.

ADCCA leads the charge to legitimise crypto-currencies like bitcoin.

The group has welcomed word that a senate inquiry will look into a regulatory framework for digital currencies by March next year.

The newly-launched Senate economics references committee is investigating a broad range of digital currency issues including tax laws, potential economic impact, and its use in illicit activities.

Mr Tucker said the industry needs a “level playing field” to ensure “innovative business is encouraged.”

The ADCCA has put its hand up to become the official body for self-regulation of the Australian digital currency industry.

“Membership in ADCCA will be open to all participants in the digital currency industry which are willing and able to comply with the regulatory framework set out by ADCCA and its members,” it said in a submission to the recent financial services inquiry.

“Different levels of membership may be available, depending on the degree of compliance sought.”

The association says proper regulation if crypto-currencies would “encourage and facilitate” the legitimate digital currency businesses to spring up while also educating customers on its use and associated risks.

ADCCA says the framework should “remain sufficiently flexible and technologically neutral so as to be able to adapt to developments as required”.