Will The Commonwealth Bank Support Bitcoin?

There's no denying the Commonwealth Bank loves its technology. It spent billions refreshing the way it does business so that it could support cool stuff like real-time transactions and contactless/phone-based NFC payments, but what has it given us lately? What's the next big thing for payments in Australia? Could this big bank be about to support Bitcoin?

What even is Bitcoin, anyway? For the uninitiated, Bitcoin is a currency generated by its users by solving complex tasks with their computers. It can either be spent online, exchanged via peer-to-peer or traded for real-world money.

That makes it sound a little silly, but that feeling wears off when you realise just how much this stuff is worth. An online Bitcoin-based trading floor recently suffered huge downtime after being busted into by hackers who made off with 24,000 coins worth over $US250,000 in the real world.

This online currency is really taking off, too. You can pay for a whole bunch of stuff with Bitcoin, including a subscription to Kim Dotcom's online storage locker, Mega.

So why aren't big banks supporting Bitcoin yet? Well according to a tweet from the Commonwealth Bank, we just might see it in the future.

This might just be the Commonwealth Bank's social media team being nice and doing its job, but it's not absurd to think that a big bank could get involved in the Bitcoin game in future, is it?

Even conversations I have had with senior Commonwealth Bank executives demonstrate that the bank is certainly aware of Bitcoin at a decision-making level, so what's stopping it from being here tomorrow?

The barriers to the bank actually supporting the fledgling digital currency are most likely security, technology and potential profitability (or lack thereof). The bank won't do it if it can't both keep it safe and make money out of it, after all.

Either way, we have asked the Commonwealth Bank about their position on Bitcoin and will update you when we hear back.

Thanks Allan H for getting in touch!


Comments

    Seems more like a fob-off than anything. "Sure, I'll pass that on to my manager"

    I can't exactly see them supporting Bitcoin. Why would they? Apart from the very in crowd, hardly anyone understands what it even is, let alone how it works.

    So why aren’t big banks supporting Bitcoin yet?

    Just because banks are not needed.

    In the long run the big banks do not have a choice than supporting the BTC. More and more people are switching to digital currency. If one bank jumps on the BTC wagon all bank will have to in order to stay in the game.

    Given the large number of frauds and thefts that have happened in the Bitcoin world already, and the technologies that allow Bitcoin 'mining' in addition to it being a currency used heavily in drug transactions (silk road on TOR) and other even nastier activities on the web I bet Commbank just can't wait to set up a Bitcoin exchange..............

    they could create their own currency or bitcoin clone

    call it commcoin or something
    self controlled so security would be as good as they create it

    and be industry leading so control the market

    Last edited 28/02/13 4:58 pm

      Call them Galactic Credits and every geek will be instantly onboard.

      Sure that will work - not.

    steve f, sorry to say that AUD is stolen, ppl do fraud, people buy drugs with it too, oh and guns, USD has been used the same way for longtime....it is something that happens with currencies the world over - just means Bitcoin is being seen as a currency and used like one.... there are more and more "non illegal" ways to spend bitcoins as mentioned in the article
    the "technologies " of mining a bit of software on a computer running a graphics card currently...

    interesting how it is being viewed in the USA too http://www.fincen.gov/statutes_regs/guidance/pdf/FIN-2013-G001.pdf

    It is an interesting time to be involved in Bitcoin
    Thanks for the article gizmodo :)

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