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- Although stating that there are risks associated with crypto adoption, the CBA acknowledged the risks of missing out.
- ASIC, on the other hand, dished out cautions regarding crypto adoption.
The CEO of Commonwealth Bank of Australia (CBA), Matt Comyn, has expressed concerns about the fear of missing out on Bitcoin and other crypto-assets.
The CBA also referred to as CommBank, became one of the “big four” Australian banks with businesses across New Zealand, Asia, the US, and the UK. On the 3rd of November, the bank announced plans to trade 10 digital assets on its mobile app.
CBA addresses risks in adopting crypto and risk of missing out
Comyn explained the company’s stance on the crypto industry in an interview with Bloomberg. He commented:
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.
Also, the bank’s CEO insinuated that there would be more to come as CBA moves towards crypto adoption. He accentuated that the bank sees many use cases for blockchain technology as well as robust consumer demand. Therefore, the bank is trying to understand and provide a competitive offering to customers while disclosing the risks involved.
Related: Finder’s new crypto-deposit product offering 4% returns sounds alarm for banks
Comyn also expressed an opinion on central bank digital currencies (CBDCs). He said many banks are looking into the merit of CBDCs, and that is something the bank wants to be a part of.
He expressed that it’s important that Australia is evolving in capacity while “piloting different versions of the future” and hopes the CBA can play a role in that.
ASIC says commission is unable to regulate the crypto sector
Meanwhile, the Australian Securities and Investments Commission (AISC) notes that it is unable to manage the sector. Hence, the Commission urges investors to err on the side of caution. This is despite the bullish stance by CBA and other central banks globally.
During the Australian Financial Review Super & Wealth Summit on the 22nd of November, Joe Longo urged that the financial enforcer cannot regulate crypto seeing as the asset class at present doesn’t fall underneath the scope of “financial products” in Australia:
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.
On a personal warning note, Longo urged local investors to pursue crypto with great caution. Nonetheless, he pointed out that the crypto proposals submitted last month by the Australian Senate were the right move for the local climate.
Recently, the price of Bitcoin has been steadily declining, despite nearing a new ATH less than a month ago. BTC is currently trading at $56,369, losing more than 2 percent in the last 24 hours
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