Matt Comyn, the CEO of the commonwealth bank of Australia, revealed that the bank has more concerns about the risks involved in not participating in crypto than its adoption.
This bank will be the first in Australia to provide crypto-based services. The bank made this announcement on November 3, revealing its plans to support the trading of ten digital assets through its banking app.
During an interview on November 19 with Bloomberg TV, Comyn was asked about the CBA’s view about crypto. He revealed that:
“We see risks in participating, but we see bigger risks in not participating. It’s important to say that we don’t have a view on the asset price itself, we see it as a very volatile and speculative asset, but we also don’t think that the sector and the technology is going away anytime soon.”
According to Comyn, much more will come from the bank’s crypto adoption play, highlighting that the CBA sees areas where blockchain tech can prove helpful, along with the constant request from consumers. He added:
“And so we want to understand it, we want to provide a competitive offering to customers with the right disclosure around risks. We want to build capability in and around DLT and blockchain technology.”
Though the CBA seems bullish concerning crypto, the Australian Securities and Investments Commission (ASIC) has cautioned investors, stressing that it cannot oversee the sector.
During the Australian Financial Review Super & Wealth Summit held on November 22, Joe Longo, the ASIC chairman, suggested that ASIC cannot regulate cryptocurrencies because it isn’t categorized under the reach of “financial products.” He said:
“The demand-driven nature of the rush into crypto has thrown up some unique challenges. At present many crypto-assets are probably not ‘financial products’, making it difficult for financial advisers to offer counsel. ASIC has already provided some guidance on exchange-traded funds linked to crypto-assets — they at least are financial products and traded on a licensed exchange, so there will be some protections there — but for the most part, for now at least, investors are on their own.”
Disclaimer: Information found on Blue Edge Crypto is those of writers quoted. It does not represent the opinions of Blue Edge Crypto on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.