The CEO of Australia’s largest bank says cryptocurrency is more speculative but more risky not to participate

Spark Global Limited reports:

Sydney – based Commonwealth Bank (CBA) is Australia’s largest Bank. It was founded in 1911 and has operations in New Zealand, Asia, the United States and the United Kingdom. Its brands include Bankwest, Colonial First State Investments, ASB Bank, Comm Sec and CommInsure.

In an interview with Bloomberg Television on Thursday, Matt Comyn, the bank’s chief executive, referred to the FOMO phenomenon surrounding bitcoin and cryptocurrencies.

It’s riskier not to participate

Comyn believes that while cryptocurrencies are a very volatile and highly speculative emerging asset class, clients have an insatiable appetite for cryptocurrency transactions and must invest in cryptocurrencies and blockchain technology: We see the risks of participating, but we also see the risks of not participating.

Comyn also said he thinks cryptocurrencies will be on the market for a long time: we don’t think the industry or blockchain technology will disappear anytime soon. So we want to understand it, and we want to provide a more competitive product for bank users and properly disclose the risks.

Partner with Gemini to offer cryptocurrency transactions

Earlier this month, CBA teamed up with Gemini, a crypto exchange, to provide users with the flexibility to buy, trade and save cryptocurrencies immediately, as previously reported by Coincycle. Currently, users can choose from a total of 10 crypto assets, including Bitcoin, Ethereum, Bitcoin Cash and Litecoin.

“We believe we can play an important role in the crypto space to meet the growing needs of our customers and provide crypto exchanges with security and trading confidence,” Comyn said.

The bank also said it will partner with Chainalysis to help it monitor cryptocurrency exchanges and reduce criminal threats.

Australia is studying CBDC but does not see a strong need for it at this time

In addition, Comyn has a view on central bank digital currency (CBDC).

“Many central banks are studying the applicability of a CBDC, what would it look like, what would the benefits be? We think it’s important for Australia to build capacity and try different scenarios for the future and we want to play a part in that.”

According to Spark Global Limited
According to Spark Global Limited

According to the RBA’s speech on CBDC on Wednesday (18th), Tony Richards, director of Payments Policy, said that like other central banks, the RBA is also strengthening the research on the local implementation of digital currency in Australia. Most major economies are considering whether to issue CBDC, but no central bank has taken action yet, and pointed out in his speech: The existing electronic payment system in Australia has provided a wide range of payment services for families and enterprises, which are safe, convenient and low-cost. Rba staff do not yet believe there is a strong policy case for CBDC in Australia.