Commonwealth Bank of Australia to Offer Crypto Transactions to 6.5 Million Australians, 'Other Banks to Follow'

The Commonwealth Bank of Australia (CBA) is launching a cryptocurrency trading service for the 6.5 million users of its CommBank app.

CBA will be the first bank in Australia to support cryptocurrencies, Blockchain Australia says, joining the other “big four” banks including National Australia Bank (NAB), Australia and New Zealand Banking Group (ANZ) and Westpac” Inevitable" will soon follow suit.

According to a Nov. 3 statement, CBA has partnered with Gemini crypto exchange and blockchain analysis firm Chainalysis to launch its crypto services. The bank will roll out a pilot for a limited number of customers in the coming weeks ahead of a full rollout of the service in 2022.

Its banking app will support 10 crypto assets, currently supporting BTC, ETH, BCH and LTC.

Blockchain Australia CEO Steve Vallas told Cointelegraph that the move is “very important” as Australia’s big four banks “reinforce our national and international reputation as a financial services destination.”

"The global impact of this signal will dwarf the confidence of local digital asset industry players that Australia should be a destination for cryptocurrency and digital asset adoption."

According to Vallas, the rapid growth and adoption of cryptocurrencies has turned the “risk of staying on the sidelines” for big banks into a risk of “inaction” and being left behind. Vallas believes it is only a matter of time before other major Australian banks launch their own crypto services.

“It is inevitable that other banks will follow. The local regulatory landscape is becoming clearer as the industry and government are addressing issues such as licensing head-on. Barriers to action and engagement are being removed,” he said.

Caroline Bowler, CEO of local cryptocurrency exchange BTC Markets, echoed Vallas’ sentiments, noting: “As regulation looms and the nation’s largest banks allow crypto trading, traditional financial interest is opening the floodgates.”

"The CBA move is exciting and inevitable. It's another 'day to remember' for cryptocurrencies, and it appears Australia has suddenly relinquished its lead. All along, we've been thought of as playing catch-up, but Now we are entering global leadership with our largest bank."

Gemini’s head of global business development, Dave Abner, said his company is “proud” to partner with CBA to launch the world’s leading encryption service.

"The exponential international growth of digital assets, combined with Gemini's institutional-grade security and proactive regulatory approach, means this partnership will set new standards for banking and financial platforms in Australia and globally," he said. "

However, not everyone is satisfied with CBA's cooperation. Adrian Przelozny, CEO of Australian cryptocurrency exchange Independent Reserve, expressed disappointment with CBA's cooperation with overseas companies.

"It is disappointing that the CBA has chosen an overseas company rather than a local one. We will now approach other Australian banks," Przelozny said.

On Oct. 15, Cointelegraph reported that Canberra-based bitcoin trader Allan Flynn settled his first complaint against ANZ in the ACT Civil and Administrative Tribunal over allegations he made of digital currency transactions in 2018 and 2019. Banking is canceled as an occupation of DCE.

While ANZ has denied any responsibility, the bank offered him the opportunity to reapply for a bank account, suggesting the bank is more open to cryptocurrencies than it was two or three years ago. Flynn is also suing Westpac.

Commenting on today’s news, Flynn told Cointelegraph that the crypto environment in Australia is changing rapidly:

“There’s a lot going on in Australia’s bitcoin space all of a sudden; Senate inquiry, ANZ acknowledging there is a legitimate human rights issue in my complaint to answer, AUSTRAC special statement on debanking last Friday, and now the CBA digital currency plan is being revealed .”

He added: "I'm just here to defend my legal human rights and hope to bring about change."

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