Bitcoin and cryptocurrencies were born as a way to avoid the traditional financial system around banks and other financial institutions. With Bitcoin, you are your own bank, and nobody can do anything about it. Bank of America’s CTO released a statement in which she explains that the institution sees bitcoin as ‘troubling.’
Bank of America Position on Bitcoin
For Bank of America, Bitcoin as a payment system is troubling. According to Cathy Bessant – CTO of Bank of America – bitcoin has been designed not to be transparent.
Mrs. Bessant commented while talking with CNBC:
“As a payment system, I think it’s troubling, because the foundation of the banking system is on the transparency between the sender and the receiver, and the cryptocurrency is designed to be nothing of the sort. In fact, it is designed to be not transparent.”
She said that it is difficult to control who transacts in this space, what individuals do, and how to regulate it. At the moment, the bank did not prohibit its users to purchase cryptocurrencies but clients cannot use credit cards to buy virtual currencies.
“Just like we don’t allow stocks to be purchased on our credit cards, we’re not going to allow cryptos or other currencies to be purchased on our credit cards,” Mrs. Bessant said.
Bank of America Stance Towards Cryptocurrencies
This is not the first time that Bank of America gives its opinion about cryptocurrencies. The most important banks are worried about how to compete in the crypto space and how to deal with that.
According to a report released by the famous bank, they explain that the bank might not be successful in developing or introducing new products and services.
The report explains:
“The competitive landscape may be impacted by the growth of non depository institutions that offer products that were traditionally banking products as well as new innovative products. This can reduce our net interest margin and revenues from our free-based products and services.”
The competitive landscape to which the make reference is referred to blockchain technology and the increasing interest for virtual currencies. These new technologies will allow individuals, enterprises, and even governments to replace banks and institutions as financial services providers.
“In addition, the widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adopt our existing products and services as we grow and develop our internet banking and mobile banking channel strategies in addition to remote connectivity solutions. We might not be successful in developing or introducing new products and services.”
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Image Courtesy of CNN Money
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