November 23, 2021

Australia's largest bank sees risk in abandoning cryptocurrencies

Commonwealth Bank of Australia (CBA), Australia's largest bank, is more concerned about the risks of staying away from cryptocurrencies than those associated with the introduction of the asset class. CBA CEO Matt Comyn said this on Bloomberg TV.

In early November, the institution announced that it would become the first bank in the country to offer customers access to digital assets. CBA announced trading in ten cryptocurrencies through the CommBank app.

During the interview, Comin responded to a question about the bank's involvement in the cryptocurrency industry:

We understand the risks of getting involved in the industry, but we see big ones in non-participation. It is important to note that we have no view on the asset prices themselves, we see them as very volatile and speculative. That said, we don't think the sector and technology will disappear in the near future

The CBA chief suggested that the bank's presence in the industry would be broader than supporting cryptocurrency trading. He stressed that the institution sees many scenarios for using blockchain technology and strong demand from consumers.

So we want to understand this to provide a competitive proposition to customers with the right risk disclosure. We would like to create opportunities in and around DLT and blockchain technology, Comin added.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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