Crypto CBA: Commonwealth Bank to be Australia’s first bank to allow customers to hold and use cryptocurrency

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Commonwealth Bank has announced that it will become the first major Australian bank to allow customers to buy, sell and hold cryptocurrencies through its products.

The bank released a statement on Wednesday, saying it had partnered with crypto exchange regulator Gemini to design a service for the CommBank app.

It will allow customers to access crypto assets including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

The pilot will begin in the coming weeks before rolling out to more customers next year.

Commonwealth Bank has announced that it will become the first major Australian bank to allow customers to buy, sell and hold cryptocurrencies. Credit: MORGAN SETTE / AAPIMAGE

“The emergence and growing demand for digital currencies from customers creates both challenges and opportunities for the financial services industry, which has seen a significant number of new players and business models innovate in this area,” Commonwealth Bank CEO Matt Comyn said in a statement.

“We believe we can play an important role in crypto to meet what is clearly a growing customer need and provide capability, security and confidence in a crypto trading platform.

Dave Abner, Global Head of Business Development at Gemini, said the partnership “will set a new standard for banks and financial platforms in Australia.”

“We are proud to provide trading and custody services to CBA as they begin to unlock access to cryptocurrency investments for many Australians,” he said.

The move will give customers access to crypto assets, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Credit: Dan Kitwood / Getty Images

The move also included blockchain data and analytics company Chainalysis.

“Customers have expressed concern about some of the crypto services on the market today, including the frictions of using third-party exchanges, the risk of fraud, and the lack of trust in some new providers,” said Comyn.

“That’s why we see this as an opportunity to bring a reliable and secure experience to our customers. “

Experts react

Australia is emerging as a cryptocurrency leader, according to industry experts, following the Commonwealth Bank’s decision to allow digital currency trading.

BTC Markets cryptocurrency exchange boss Caroline Bowler has said it is a red letter day for technology.

She said the bank is one of the most important financial institutions in the world and will provide change to millions of customers.

This has placed Australia in a leading position in cryptocurrency, Bowler said.

She tipped other banks and pension fund managers to follow.

Payment giants such as PayPal and Afterpay, owner of Afterpay, already allow customers to exchange cryptocurrencies.

Commonwealth Bank executives are wary of these providers who lure young people away from established banks.

The founder of the Finder comparison service, Fred Schebesta, said more people will trade cryptocurrency as banks and regulators accept it.

About 3.3 million Australians hold or exchange digital money, according to a Finder study.

Finder has allowed users to trade through its app this year and Schebesta said the adoption has been amazing.

It did have a warning for users, however.

“People should be sure to compare crypto trading fees, as these can vary widely from vendor to vendor.”

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