The Commonwealth Bank of Australia understands the dangers of losing out on cryptocurrency
On the bank’s recent crypto adoption play, CBA CEO Matt Comyn remarked, “We see dangers in engaging, but we see bigger risks in not participating.”
The Commonwealth Bank of Australia’s (CBA) CEO, Matt Comyn, stated that the bank is more concerned about the dangers of losing out on crypto than the risks of its acceptance.
After announcing on Nov. 3 that it will facilitate the trading of 10 digital assets directly through its banking app, the CBA is set to become the first of Australia’s “big four” banks to provide crypto-based services.
In an interview with Bloomberg TV on Friday, Nov. 19, Comyn was asked about the CBA’s position on cryptocurrency, and the CEO stated:
“We see risks in taking part, but we see greater risks in not taking part.” It’s crucial to note that we don’t have an opinion on the asset price; we consider it as a very volatile and speculative asset; nonetheless, we don’t believe the sector or technology will go away anytime soon.”
Comyn also hinted that the CBA’s crypto adoption strategy will be expanded in the future, stating that the bank sees various applications for blockchain technology as well as significant consumer demand.
“As a result, we want to understand it so that we can deliver a competitive service to clients with the appropriate risk disclosure.” He went on to say, “We want to establish capability in and around DLT and blockchain technologies.”
ASIC has no FOMO and is unable to regulate the industry.
While the CBA looks to be positive on crypto and distributed ledger technology, the Australian Securities and Investments Commission (ASIC) has cautioned investors and stated that it is unable to regulate the sector.
ASIC chairman Joe Longo said on Nov. 22 at the Australian Financial Review Super & Wealth Summit that the financial regulator can’t oversee crypto since the asset class isn’t officially classified as “financial products” in Australia:
“The demand-driven aspect of the cryptocurrency craze has created some unique obstacles.” Many crypto-assets are likely not ‘financial products at the moment, making it difficult for financial advisers to provide advice.”
“ASIC has already issued some guidelines on exchange-traded funds related to crypto-assets — they are at least financial goods and traded on a regulated exchange, so there will be some protections there — but investors are on their own for the time being,” he added.
Longo advises local investors to proceed with prudence when it comes to crypto, stressing that “the phrase ‘don’t put all your eggs in one basket comes to mind.” He did, however, highlight that the Australian Senate’s crypto measures, which were introduced last month, were the proper approach for the local atmosphere.
“Regardless of where we end on regulation, Senator Bragg’s committee was correct in emphasizing the reality that crypto is right here, right now, and being driven by extraordinary consumer and investment demand,” he stated.
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