Matt Comyn, CEO of the Commonwealth Financial Institution of Australia (CBA), says the bank is more concerned about the risks of missing out on cryptocurrencies than the risks associated with launching them.
CBA will be the first of the Big Four in Australia to offer crypto-based services after the company announced on November 3rd that it would support trading in 10 digital assets directly through its banking app.
Speaking to Bloomberg Tv on Friday November 19, Comyn was asked about the CBA’s involvement in the crypto space, the executive finding:
“We see risks in participating, but we see greater risks in not participating. It is important to say that we are not taking a position on asset prices themselves, we consider them to be a very volatile and speculative asset class, but we also do not believe this sector and technology will go away anytime soon. “
Comyn also hinted that the CBA’s crypto adoption game is doing even more, as he stressed that the bank sees multiple use cases of blockchain technology coupled with strong consumer demand.
“And that’s why we want to understand that and offer our customers a competitive offering with appropriate disclosure of the risks. We want to build capacities in and around DLT and blockchain technology, ”he added.
ASIC has no FOMO and cannot regulate the field
While the CBA looks bullish on cryptocurrencies and distributed ledger technology, the Australian Securities and Investments Commission (ASIC) has urged investors to exercise caution because it cannot oversee the sector.
In a speech at the Australian Financial Super Valuation and Wealth Summit on November 22nd, ASIC President Joe Longo suggested that financial enforcement cannot regulate cryptocurrencies due to the current asset class, which does not fall under the financial products category in Australia:
“The demand-driven nature of the crypto rush has presented some unique challenges. Currently, many crypto assets are unlikely to be “financial products,” making it difficult for financial advisors to provide advice. “
“ASIC has provided some guidance on exchange-traded funds linked to crypto assets – at least they” to be Financial products and are traded on a licensed exchange, so there will be some protection there – but for the most part, at least for now, investors are on their own, ”he added.
Related: Reserve Bank warns Australians not to bet on “fashionable” cryptocurrency
From his personal point of view, Longo urges local investors to watch crypto with caution, noting that “the maxim ‘don’t put all your eggs in one basket’ has been kept in mind.” Cryptocurrency proposals presented last month are an appropriate step for the local environment.
“Wherever we have landed from a political perspective, Senator Bragg’s committee has rightly highlighted the fact that cryptocurrencies are here and now on our doorstep, fueled by unusual demand from consumers and investors,” he said.