Matt Comyn, CEO of the Commonwealth Bank of Australia (CBA), said the bank is more concerned about the risks of missing out on cryptocurrencies than about those associated with their adoption.
The CBA will become the first of Australia's "big four" banks in offer crypto-based services, after the company announced on November 3 that it will support trading 10 digital assets directly through its banking app.
Speaking to Bloomberg TV on Friday, November 19, Comyn was disputed on the CBA's opinion on the cryptocurrency sector, and the CEO noted that:
โWe see risks in participating, but we see greater risks in not participating. It is important to say that we do not have an opinion on the price of the asset itself, we see it as a very volatile and speculative asset, but we do not believe that the sector and the technology will disappear anytime soon ".
Comyn also suggested that there will be much more to come from the CBA's crypto adoption game, as he highlighted that the bank sees many use cases for blockchain technology, along with strong consumer demand.
โAnd that is why we want to understand it, we want to offer a competitive offer to customers with adequate information on risks. We want to develop capabilities in and around DLT and blockchain technology, โhe added.
ASIC does not have FOMO and cannot regulate the sector
While the CBA appears to be bullish on crypto and distributed ledger technology, the Australian Securities and Investments Commission (ASIC) has urged investors to be cautious, while noting that it cannot oversee the sector.
ASIC President Joe Longo spoke at the Australian Financial Review Super & Wealth Summit on November 22. He suggested that the financial executor cannot regulate cryptocurrencies as the asset class is currently not included in the scope of "financial products" in Australia:
โThe demand-driven nature of the cryptocurrency rush has posed some unique challenges. At present, many crypto assets are probably not 'financial products', making it difficult for financial advisers to offer advice. "
โASIC has already provided some guidance on exchange-traded funds linked to crypto assets; at least is it so financial products and they are traded on a licensed exchange, so there will be some protections there, but for the most part, at least for now, investors are on their own, โhe added.
Related: Reserve Bank warns Australians against betting on 'fashion-driven' cryptocurrencies
From Longo's personal point of view, he urged local investors to pursue cryptocurrencies with great caution, noting that "the maxim 'don't put all your eggs in one basket' comes to mind." However, he also emphasized that crypto proposals presented by the Australian Senate last month it was the right decision for the local weather.
"Wherever we land from a political perspective, Senator Bragg's committee was right to highlight the fact that cryptocurrencies are on our doorstep, here and now, and driven by extraordinary demand from consumers and investors," he said.
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