Commonwealth Bank of Australia Lowers International Money Transfer Fees
In its latest effort to woo back customers who are fed up with Australia’s excessive bank fees, the Commonwealth Bank (CBA) recently reduced its international money transfer fees by as much as 70 percent. Customers who use the NetBank or CommBank app to transfer $1,000 AUD or less now pay $6 in fees instead of $22. Smaller sends like these represent the bulk of transfers through CBA and are mainly destined for New Zealand, the UK, the US, Canada, Hong Kong and Japan.
For transfers over $1,000 AUD, the decrease is less dramatic but still noteworthy: $12 versus $22. CBA customers who go the traditional, in-person route to make cross-border payments won’t benefit from the bank’s newfound generosity. They’ll still need to pay a $30 flat fee. And all customers are subject to additional fees from receiving banks.
CBA executive general manager Clive van Horen said that the fee reductions were made possible by the rise in customers who send money online and the cost savings that this trend entails. “More than three quarters of our customers go online to send money overseas, making it quicker, and more convenient. As such, we’ve reviewed the international fee structure and made a change that better reflects how our customers bank with us.”
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Reserve Bank of Australia Lets Blockchain and Cryptocurrencies off the Hook (for the most part)
At a hearing late last month in front of the Australian House of Representatives Standing Committee on Tax and Revenue, two officials from Australia's central bank asserted that cryptocurrencies and the blockchain technology that supports them do not require immediate regulation. Tony Richards and David Emery stated that "the distributed and cross-border nature of digital currencies like Bitcoin means that regulation of the core protocols of these systems is unlikely to be effective. From the Bank's payments policy mandate, digital currencies do not currently appear to raise any pressing regulatory issues.” This position is consistent with findings the bank presented to the Australian Senate two years ago.
For the global remittance industry, however, the duo qualified their claim and admitted that coordinated regulations are needed. They intend to work with the Bank for International Settlements and its Committee on Payments and Market Infrastructures (CPMI) to ensure a smooth and fair integration of digital money into Australia’s $10 billion money transfer market.
Richards and Emery also took time during the hearing to extol the benefits of Blockchain and digital currencies, especially for sectors that rely heavily on intermediaries. “The greatest potential is likely to be in sectors where workflows involve lots of different parties with no trusted central entity, and where current practices are quite inefficient.”
Chicago Mercantile Exchange Boosts Bitcoin Market
CME Group/Henry Delforn/Allan Schoenberg
The Chicago Mercantile Exchange (CME), the world’s largest futures exchange, announced that it will launch Bitcoin futures this quarter pending regulatory approval. In reaction, Bitcoin’s value reached a record-breaking level of over $6600. According to CME Group chairman and CEO Terry Duffy, the decision stemmed from “increasing client interest in the evolving cryptocurrency markets.” Duffy expressed confidence that the CME’s self-certification and application process at the U.S. Commodity Futures Trading Commission will achieve the desired result.
Investment bankers expect CME’s plans to make a huge impact, especially because Bitcoin has yet to be listed on a major exchange. "The addition of CFTC-regulated bitcoin derivatives will bring a great deal of liquidity and legitimacy to the cryptocurrency ecosystem," said Ari Paul, CIO and managing partner at BlockTower Capital, a cryptocurrency investment firm. Bitcoin derivatives allow institutional investors who are prohibited from investing directly in Bitcoin to stake a claim to this revolutionary market.
