Why Commonwealth Bank of Australia Decided to Adopt Crypto?

8:15 am, Tue, 23 November 21

The Commonwealth Bank of Australia (CBA) was founded in 1911 and is a multinational bank with businesses in various countries. The present CEO of the bank is Matt Comyn, who joined in 2018.

Even though there are numerous aspects for banks to consider, before supporting crypto-related services, the benefits of doing so are undeniable as well.

Matt Comyn seems to share this opinion as he recently stated,

We see risks in participating, but we see bigger risks in not participating,”

The Australian citizens are already in favor of crypto, as a large audience has been adopting and embracing digital currencies.

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Adoption of Crypto by the CBA

Earlier this month, the Commonwealth Bank of Australia, announced that it will be offering support to 10 digital currencies. The supported crypto assets can be traded by the people using CBA’s banking application.

During an interview, Matt Comyn was asked about CBA’s approach of the crypto assets, to which he answered:

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 are going away anytime soon.”

With the plans to now support crypto, CBA has become the first of the “big four” banks in the country that will be offering crypto-related services.

Comyn further 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,”

There is a strong demand for crypto among the people and catering to those needs and demands can be quite beneficial for institutes, considering crypto is here to stay.

Even though the demand for crypto is increasing and banks are starting to offer support to digital assets, the Australian Securities and Investments Commission (ASIC) is not so bullish.

The ASIC has advised the customers interested in crypto to be careful. Joe Longo, Chairman of ASIC, recently stated at the Australian Financial Review Super & Wealth Summit:

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.”

Should Crypto Investors and Traders be Cautious?

People who have been in the crypto space for quite some time are undoubtedly aware of its volatility. Despite the unpredictability of the crypto market, cryptocurrencies are expected to be the future of the global financial system.

Therefore, crypto investors and traders should be cautious as they should use secure exchanges and only begin buying or trading crypto after acquiring helpful information.

Therefore, if you are also interested in buying digital assets make sure you choose a platform from some of the biggest crypto exchanges.

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