Cryptocurrency is gaining traction in the financial sector due to its higher efficiency and security compared with traditional payment methods. However, the global regulatory framework is still evolving and there are many unanswered questions surrounding crypto regulation. One of these is how banks, credit unions, brokerages and financial institutions approach cryptocurrency. For example, will they will support it? Meanwhile, the Commonwealth Bank of Australia (CBA) has taken a fairly progressive stance on crypto. So, let's take a look at Commonwealth Bank’s new crypto program.
Does CBA Support Crypto?
The Commonwealth Bank of Australia (CBA) has become the first bank in Australia to offer a crypto service, and one of the few banks globally to offer such a service. With the new crypto service, Commonwealth Bank customers can now buy, sell, and hold cryptocurrencies directly through its CommBank app. Customers will be able to buy up to 10 crypto assets including Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
The bank has partnered with Gemini, a trusted New York-based crypto exchange platform, to provide its services. In addition, CBA is collaborating with Chainalysis, a leading blockchain analytics firm, to provide the bank with insights into customers’ crypto transactions. The bank plans to launch a pilot program in the coming weeks in advance of a wider rollout in 2022.
What Does Commonwealth Bank Crypto Support Mean?
According to CBA's research, the bank noted, “a large number of its customers want to access crypto assets as an investment class and are already buying, selling, and holding crypto assets through a variety of crypto exchanges.”
As crypto is gaining popularity, the bank is trying to better understand customer needs and develop the necessary products and services to meet those needs.
The bank's chief executive Matt Comyn said: “The emergence and growing demand for digital currencies from customers create both challenges and opportunities for the financial services sector, which has seen a significant number of new players and business models innovating in this area."
“We believe we can play an important role in crypto to address what’s clearly a growing customer need and provide capability, security and confidence in a crypto trading platform," he added.
The Commonwealth Bank of Australia has taken a major step in providing crypto services to its customers. This has set a new precedent for banks to provide such services. As a result, it is expected that other banks will follow suit. Absolutely, it is good news for crypto fans. There is a lot of interest in cryptocurrency in the market, and it’s going to be interesting to see how the Commonwealth Bank’s crypto service is received.