Bank of America chief executive officer Brian Moynihan said on Tuesday, January 21, that the United States banking industry will embrace cryptocurrencies for payments if regulators allow appropriate action.
During a conversation with media representatives at the World Economic Forum in Davos, Switzerland, the head of the mentioned financial institution, which is the second-largest in the United States in terms of assets, answered a question about how the banking sector’s approach to cryptocurrencies might change, given the enthusiasm of United States President Donald Trump for digital currencies. According to him, if the rules come in and make it a real thing with which organizations can actually do business, the banking system will come in hard on the transactional side of it.
It is worth noting that US financial institutions mostly avoid allowing their clients to use cryptocurrency for retail transactions. At the same time, banks’ institutional units for trading and wealth management participate in markets for bitcoin ETFs.
Some leaders of the US banking industry are showing skepticism about digital currencies. For example, JPMorgan Chase chief executive officer Jamie Dimon called bitcoin a currency for criminals and fraudsters.
The head of Bank of America said that cryptocurrency could become another form of payment. According to him, there are already hundreds of patents on blockchain and an understanding of how to enter the area.
Brian Moynihan did not address the idea of cryptocurrencies like bitcoin as an investment or store of value, saying it is really a separate question.
As we have reported earlier, Bank of America Reports Earnings.
