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âWe see risks in participating, but we see bigger risks in not participating,â said CBA CEO Matt Comyn on the bankâs recent crypto adoption play.
Matt Comyn, CEO of the Commonwealth Bank of Australia (CBA), said that the bank is more concerned about the risks of missing out on crypto than those associated with its adoption.
The CBA is set to become the first of the âbig fourâ banks in Australia to offer crypto-based services after the company announced on Nov. 3 that it would support the trading of 10 digital assets directly via its banking app.
Speaking with Bloomberg TV on Friday, Comyn was questioned on the CBAâs take on the crypto sector, with the CEO noting:
âWe see risks in participating, but we see bigger risks in not participating. Itâs important to say that we donât have a view on the asset price itself we see it as a very volatile and speculative asset, but we also donât think that the sector and the technology is going away anytime soon.â
Comyn also suggested that there will be much more to come from the CBAâs crypto adoption play, as he highlighted that the bank sees many use cases from blockchain tech, along with strong demand from consumers.
âAnd 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,â he added.
ASIC holds no FOMO and canât regulate the sector
While the CBA appears to be bullish on crypto and distributed ledger tech, the Australian Securities and Investments Commission (ASIC) has urged for investor caution while also noting that it is unable to oversee the sector.
Speaking at the Australian Financial Review Super & Wealth Summit on Mo, ASIC chairman Joe Longo suggested that the financial enforcer cannot regulate crypto, as the asset class currently does not fall under the scope of âfinancial productsâ in Australia:
âThe demand-driven nature of the rush into crypto has thrown up some unique challenges. At present many crypto-assets are probably not âfinancial productsâ, making it difficult for financial advisers to offer counsel.â
âASIC has already provided some guidance on exchange-traded funds linked to crypto-assets â they at least are financial products and traded on a licensed exchange, so there will be some protections there â but for the most part, for now at least, investors are on their own,â he added.
Related: Reserve Bank warns Aussies over punting on âfad drivenâ cryptocurrencies
In Longoâs personal view, he urged local investors to pursue crypto with great caution, noting that âthe maxim âdonât put all your eggs in one basketâ comes to mind.â However, he also emphasized that the crypto proposals put forward by the Australian Senate last month were the right move for the local climate.
âWherever we land from a policy perspective, Senator Braggâs committee was right to highlight the fact that crypto is on our doorstep, here and now, and being driven by extraordinary consumer and investor demand,â he said.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.