The Commonwealth Bank of Australia‘s (CBA) CEO, Matt Comyn, stated that the bank is more concerned about the dangers of losing out on cryptocurrency than the hazards of adopting it.
After announcing on Nov. 3 that it will facilitate the trading of 10 digital assets directly through its banking app, the CBA is ready to become the first of Australia’s “big four” banks to provide cryptocurrency-based services.
“We see dangers in participation, but the dangers of not participating are bigger”. It’s important to stress that we don’t have a position on the asset price; we regard it as a highly volatile and speculative asset; yet, we don’t believe the industry or technology will vanish anytime soon.”
Comyn also hinted that the CBA’s crypto adoption strategy might adopt more expansion in the future. Claiming that the bank sees a range of uses for blockchain technology as well as high consumer demand.
“As a result, we’d like to understand more about it. So that we can provide clients with a competitive solution that includes proper risk disclosure”. “We aim to create skills in and around DLT and blockchain technology,” he continued.
ASIC has no FOMO and is unable to control the industry
While the CBA looks to be positive on cryptocurrencies and distributed ledger technology, the Australian Securities and Investments Commission (ASIC) has issued a caution to investors. Claiming 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 control crypto. Since the asset class isn’t officially classified as “financial products” in Australia.
“The Bitcoin craze’s demand-driven nature has produced certain unique difficulties”. At this point, many crypto-assets are unlikely to be categorised as “financial products,” leaving financial advisers unable to give advice.”
“ASIC has previously established certain crypto-asset-related guidelines for exchange-traded funds. They are, at the very least, financial items offered on a regulated market, so there will be some protections in place. However, for the time being, investors are mostly on their own “he stated
When it comes to cryptocurrencies, Longo recommends local investors to act with caution, adding that “the term ‘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 current context in the country.
“Senator Bragg’s committee was correct in emphasising that crypto is here, right now, regardless of where we wind up with legislation. In addition, tremendous consumer and investor demand is propelling the industry forward “said he.