Australia’s largest bank enables customers to trade bitcoins

Commonwealth Bank will partner with Gemini, a US-based crypto exchange, to bring a digital currency investment platform to over 6.5 million CBA app users.

Commonwealth Bank (CBA) will be Australia’s first bank to allow customers to buy, sell and store digital currency through the bank’s products and applications, according to a reporter in Sydney.

In an announcement released on Nov. 4, CBA said it will partner with Gemini, a US-based cryptocurrency exchange, to provide a digital currency investment platform for more than 6.5 million people that will be used for CBA applications.

In the initial stages, customers can only trade digital assets, including Bitcoin, Ether, and Litecoin. However, over time, the CBA will likely expand the scope in which customers are allowed to trade.

Matt Comyn, CEO of CBA, said the emergence and growing demand for digital currencies are creating both challenges and opportunities for the global financial services sector.

The world has seen a large number of players enter the cryptocurrency market and this innovative business model is becoming more attractive than ever.

The rapid entry of CBAs into the ranks of “logistics” providers for digital currencies will play an important role in meeting growing customer needs and providing capabilities, security and security.

Dave Abner, Global Head of Business Development at Gemini Exchange, described the partnership with CBA as “a new standard for banks and financial platforms in Australia”.

This step will help more investment capital flow into the blockchain technology platform (a strictly encrypted database system that is the fundamental foundation for the development and circulation of cryptocurrencies and financial assets). to be considered a store of value or digital gold, to become a new currency (a means of payment), legitimate, widely accepted and competitive with other fiat currencies.

Economists say that the CBA Australia pioneered the process of becoming a world leader in digital currency and new technological financial tender.

Carolines Bowler, CEO of BTC Markets, said most tech payments giants like PayPal and Afterpay are already allowing users to trade cryptocurrencies.

This is the time for banks and mutual funds to join the “Future Fintech Game”.

However, some experts complain that the CBA is choosing a foreign partner instead of working with a local exchange operator.

According to research by the financial institution Finder, around 3.3 million Australians hold or trade cryptocurrencies, most of which are young people.

However, observers said the decision to work with Gemini is fully in line with CBA’s approach strategy as digital currency regulation in Australia is still very difficult.

Previously, that bank had also decided to invest in Klarma, a financial technology company active in pre-pay and post-pay, to compete with two giants, Afterpay and Zip in Australia.

The digital currency has yet to be officially approved in Australia. The Australian Transaction Analysis and Reporting Center (AUSTRAC) is currently reviewing a number of new regulatory changes, including those related to digital currency controls.

AUSTRAC Director Nicole Rose said the agency is likely to soon enact a digital currency transaction regulation known as the “movement rule”, which requires the government of financial institutions to transmit certain information along with digital currency transactions to the nearest financial authority.

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