Commonwealth Bank allows trading of crypto currencies

The bank will let customers trade up to 10 digital currencies and will work with crypto currency providers Gemini and Chainalysis

Australia is becoming a leader in crypto currency, industry experts say, following the Commonwealth Bank's decision to allow trading of the digital currency.

Many in financial services on Wednesday praised the bank's move to allow customers to buy, sell and hold crypto currency assets through its CommBank app.

The bank will let customers trade up to 10 digital currencies, including Bitcoin and Ethereum, and will work with crypto currency providers Gemini and Chainalysis.

The boss of crypto currency exchange BTC Markets, Caroline Bowler, said it was a red letter day for the technology.

She said the bank was one of the most significant financial institutions in the world and would offer the currency to millions of customers. This put Australia in a leadership position on crypto currency.

She tipped other banks and superannuation fund managers to follow.

Leaders of financial institutions have been sceptical about crypto currencies as they are not regulated. They have also been prone to huge swings in price.

Payments giants such as PayPal and Square have allowed customers to trade. PayPal also offers buy now, pay later services, and Square is expected to follow.

Commonwealth Bank leaders are wary of these providers luring young people away from established banks.

The founder of comparison service Finder, Fred Schebesta, said more people would trade crypto currency as banks and regulators accepted it.

Around 3.3 million Australians hold or trade the digital money, according to a Finder study.

Finder allowed users to trade through its app this year and Mr Schebesta said uptake had been incredible.

He had a warning for users, however.

People need to make sure they compare the fees involved with trading crypto as these can vary dramatically between providers.