Commonwealth Bank to trade cryptocurrency in Australia
- Thread starter Administrator
- Start date
This probably is good news if Commonwealth Bank are now effectively offering Custodial Services for Crypto holdings.
With the bank itself protected by the government it probably means it'd be one of the safer places to stash crypto for those who aren't tech savvy enough to manage wallets safely.
With the bank itself protected by the government it probably means it'd be one of the safer places to stash crypto for those who aren't tech savvy enough to manage wallets safely.
Guys,just been browsing the US Federal Reserve Press releases, re crypto etc.
Press Release 20 Jan 2022
The Federal Reserve Board on Thursday released a discussion paper that examines the pros and cons of a potential U.S. central bank digital currency, or CBDC.
The paper summarizes the current state of the domestic payments system and discusses the different types of digital payment methods and assets that have emerged in recent years, including stablecoins and other cryptocurrencies. It concludes by examining the potential benefits and risks of a CBDC, and identifies specific policy considerations.
They include how to ensure a CBDC would preserve monetary and financial stability as well as complement existing means of payment.
Other key policy considerations include how to preserve the privacy of citizens and maintain the ability to combat illicit finance.
https://www.federalreserve.gov/newsevents/pressreleases/other20220120a.htm
Press Release 20 Jan 2022
The Federal Reserve Board on Thursday released a discussion paper that examines the pros and cons of a potential U.S. central bank digital currency, or CBDC.
The paper summarizes the current state of the domestic payments system and discusses the different types of digital payment methods and assets that have emerged in recent years, including stablecoins and other cryptocurrencies. It concludes by examining the potential benefits and risks of a CBDC, and identifies specific policy considerations.
They include how to ensure a CBDC would preserve monetary and financial stability as well as complement existing means of payment.
Other key policy considerations include how to preserve the privacy of citizens and maintain the ability to combat illicit finance.
https://www.federalreserve.gov/newsevents/pressreleases/other20220120a.htm
Commbank intends to use US exchange "Gemini" (owned by the Winklevoss twins).
Gemini by US standards is small (70 crypto coins to buy and sell), their trading fees are outrageous and Gary G and the SEC are having a look at Gemini and some other exchanges cos they just don't like the fact that staking rewards are higher than bank deposit interest.
From what I read, it's only a toe in the water for Commbank and whilst using Gemini's platform / IT, CommBank would just be offering 10 crypto assets to customers. I suspect the Commbank fees will be hefty but given it's run by the CommBank, punters will take comfort and may get into crypto for the very reason Buggedout noted...assumption of Govt support....which would be an incorrect assumption as the Govt support is limited to AUD20bn per bank for deposits only. Buying crypto on any Commbank platform would run the same risks as the non bank established exchanges. Unless Commbank had multiple redundant back-ups, 30 min recycling cold storage updates of customers holding, they could get hacked just like any other exchange and Aust Govt would have no liability. Nor CommBank I suspect as they will set up any crypto business as a separate, non guaranteed sub, probably registered in the Cayman Islands or BVI and you'll be asked to sign / click to acknowledge a total no-reliance, hold harmless agreement before you can use their platform and pay them large trading fees.
Gemini by US standards is small (70 crypto coins to buy and sell), their trading fees are outrageous and Gary G and the SEC are having a look at Gemini and some other exchanges cos they just don't like the fact that staking rewards are higher than bank deposit interest.
From what I read, it's only a toe in the water for Commbank and whilst using Gemini's platform / IT, CommBank would just be offering 10 crypto assets to customers. I suspect the Commbank fees will be hefty but given it's run by the CommBank, punters will take comfort and may get into crypto for the very reason Buggedout noted...assumption of Govt support....which would be an incorrect assumption as the Govt support is limited to AUD20bn per bank for deposits only. Buying crypto on any Commbank platform would run the same risks as the non bank established exchanges. Unless Commbank had multiple redundant back-ups, 30 min recycling cold storage updates of customers holding, they could get hacked just like any other exchange and Aust Govt would have no liability. Nor CommBank I suspect as they will set up any crypto business as a separate, non guaranteed sub, probably registered in the Cayman Islands or BVI and you'll be asked to sign / click to acknowledge a total no-reliance, hold harmless agreement before you can use their platform and pay them large trading fees.