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Australian banks wary of Bitcoin (BTC) and other cryptocurrencies

Wed 03 Nov 2021 ▪ 21h23 ▪ 3 min read — by Hugh Renolds

Cryptocurrencies continue to gain popularity among investors and, of course, such matters cannot pass by various banking institutions, among which are those who see great potential in digital assets.

Major Australian banks still reluctant to work with crypto

However, the reality is that many investment banks are still rather sceptical of digital assets. Some of them even refuse to provide their services to crypto investors altogether. One of the brightest examples of that is Australia, where financial institutions are particularly mistrustful towards crypto. 

Previously, many cryptocurrency providers have tried to establish contact with large institutional banks of Australia, but all to no avail. Moreover, banks did not trust cryptocurrencies so much that they completely denied any transactions, even remotely related to them.

One Australian crypto trader even claimed that more than 90 banks refused to have anything to do with him. As a result, this practice of actively refraining from cooperating with cryptocurrency providers and investors has even got its name, “debanking”.

Cryptocurrencies are gaining popularity among Australians

Still, one cannot but admit that the situation is gradually changing. That is confirmed by today’s message from the CEO of Commonwealth Bank (CBA), in which he announced that in two weeks his bank would start supporting about ten different cryptocurrencies. You can read more about that in one of our previous articles.

However, many experts do not consider such actions on the part of the CBA unexpected. The reason being the recently growing popularity of cryptocurrencies among wider audiences in Australia. According to some studies, every sixth Australian citizen is not only familiar with crypto assets but is also actively investing in them. Therefore, sooner or later, other banks will surely have to follow suit and start introducing crypto-related services to their operations, as this kind of popularisation of digital assets cannot be overlooked. 

Naturally, the Australian government has also taken heed of all that and has even shown willingness to actively participate. One of the latest decisions by the country’s legislators, led by liberal Senator Andrew Bragg, was a set of crypto-related reforms aimed at increasing the number of cryptocurrency-focused enterprises. Even though the reforms will have to wait until next year’s federal election to come into power, the fact that the government has been considering introducing crypto to the Australian lifestyle can only inspire anyone with a passion for digital money.

With reforms like that properly implemented, Australia could see a massive shift in bias towards cryptocurrencies from wary-cold to friendly-warm (which would fit ever so well with the climate in the country if you ask me).

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Hugh Renolds avatar
Hugh Renolds

I believe in the bright future of crypto. I have been investing since 2017 and look to share my experience in, and thoughts on, crypto and the blockchain.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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