Australia’s largest bank cracks down on customers, reduces cash
Commonwealth Bank has introduced restrictive measures for customers which limit the amount they can transfer and for what purpose, the Daily Mail reported Monday.
Australia’s largest bank notified customers in a recent email that starting September 30th it will begin limiting transfers to A$10,000 in a month, particularly to cryptocurrency exchanges, “to protect customers from scams.”
The email stated that Commonwealth would impose the monthly limit on transfers “to accounts and/or merchants which we reasonably believe may be owned or controlled by a cryptocurrency or digital asset exchange or being used to purchase cryptocurrency or digital assets.”
It would also apply to “using a particular payment product, type of transaction or dealing” and “where it is reasonably necessary to prevent systemic or individual criminal activity, including suspected or potential fraud or scams.”
“We're introducing new measures to help protect you from scams and fraud,” the bank wrote.
Recently revised terms and conditions also allow the bank to “suspend or close your account, cancel or suspend your card or other access method” to stop crypto payments. Crypto payments are currently held for 24 hours before being processed.
A Commonwealth spokesperson said the purpose of the new restrictions is to “keep customers safe.”
Other banks, including Westpac, Bendigo and National Australia Bank are also beginning to crack down on cryptocurrency, though so far have not introduced such restrictions.
The measures come as Commonwealth Bank continues to open branches where customers cannot withdraw cash, called “specialist centres.”
More than a billion notes in cash have disappeared from circulation in Australia over the past twelve months, reports Sky News.
Australian bank ANZ is also eliminating cash services at certain branches in an effort to support more digital transactions.
In a March report about a coming “digital wave,” ANZ noted that digital payments are becoming a growing preference over physical payments like cash.
“As consumers become accustomed to digital and even invisible payments – think transport apps automatically taking care of payment – they increasingly regard making physical payments as an inconvenience,” said ANZ Worldline Payment Solutions Chief Market Officer Anne McDonnell.
The bank also expressed enthusiasm for central bank digital currencies (CBDC), which are digital currencies issued and governed by a central bank. Unlike with cash, transactions performed with CBDC are not anonymous and have the potential to be monitored — and even controlled — by authorities.
