Bank of America does not plan to adopt Bitcoin or cryptocurrencies in the near future – DiarioBitcoin

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Bank of America does not plan to adopt Bitcoin or cryptocurrencies in the near future - DiarioBitcoin By Hannah Perez

Bank of America is not rushing to adopt cryptocurrencies, but not so much because it does not see interest, but because regulation prevents it.

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  • The second largest US bank is not rushing into the crypto space.
  • We are not missing anything”said the BoFA CEO, when asked about crypto.
  • Meanwhile, other Wall Street banks are moving to offer the new asset class.

The second largest bank in the United States, Bank of America (BofA)will not rush into the digital currency space, even as other banking giants are making strides in this space.

In an interview for Yahoo Finance!the CEO of Bank of America, Brian T. Moynihan revealed that the institution has no plans to start offering Bitcoin in the near future. During the annual meeting of World Economic Forum in Davos, the news outlet asked the bank’s director about the outlook for the new asset class and whether the company felt it was missing out on a major breakthrough by not entering the sector.

NopeHe emphatically replied. Moynihan, who expressed his confidence around BoFa’s more traditional business. “We are not missing anything, we are taking payments through the roof“, he added.

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The regulation does not allow it.

Although the director revealed that BofA has “hundreds of patents” To use blockchain as a tool for processing digital payments, it is not yet ready for the adoption of digital assets based on said technology. He explained that the The bank is heavily regulated and that prevents it from developing a strategy focused on cryptocurrencies.

We can conduct business research and analysis [sobre monedas digitales] doing research, but we don’t do people’s cryptocurrency accounts, and frankly, we’re not allowed to.

Moynihan, who has been running the bank for the past 12 years, added that he believes it is more fruitful for BofA to continue to focus on what it does: being a bank and fostering the financial well-being of its clients.

The most important thing is to help American consumers have a successful financial life“, he highlighted and continued:

Our life plans, our financial planning tool (four or five million users) only started three years ago. That’s what you need to do, get people to learn how to make their money work harder to help them in their lives.

Regarding the economic outlook, the CEO did not express concern about a possible economic recession in the United States, mainly because the economy has grown since 2019 and the projection of economic growth is now higher, he argued. He also noted that BofA analysts forecast a slowdown in the country’s now-high inflation, with estimates of a rate of 2.5% this year and a gradual drop to 1.56% by 2023.

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BoFA and cryptocurrencies

The comments diverged slightly from a recent report in which the bank’s strategists suggested the US economy could slip into a recession. Published at the beginning of April, the note by the chief investment strategist of Bank of America, Michael Hartnett said that, in this possible scenario, cryptocurrencies could eventually outperform bonds and stocks.

BofA strategists have shared several encouraging reports about the place of the new asset class within the broader financial and economic context. Despite the fact that the cryptocurrency market has been in a downward trend in recent months, with Bitcoin Pulling back more than 50% from its price peak last year, the bank has sounded optimistic.

In a note addressing the recent implosion of land, argued that the collapse of UST was possibly not putting the rest of the cryptocurrency market at risk. Instead, they pointed out that the downtrend could respond to a number of broader macroeconomic factors, including inflation, Fed rate hikes and recession fears.

Despite generating reports and analysis on the cryptocurrency market, BoFA is one of the major US banks that has yet to dive into the crypto space. Many banking giants wall streetincluding Goldman Sachs Y Morgan Stanley, have already taken steps in this sector, inaugurating services and offering their clients exposure to Bitcoin and other crypto assets.

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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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