"Banks and crypto"
Updated: Feb 7
There is no doubt that banks are at the top of the list when it comes to cryptocurrency's enemies. I was quite unaware that a number of banks in the United States and Europe are banning credit cards used for purchasing crypto. If certain banks are banning and taking such measures, there has to be a reason; but with all the information online, I guess everyone will have to just take a side on what to believe.
Bank of America has been very outspoken about their feeling on cryptocurrencies. In last February's annual 10-k filling commission about banks operations and business risks, Bank of America quoted, "Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies." The bank also said that such increased competition may "negatively affect our earnings" or affect "the willingness of our clients to do business with us." In addition, it was also stated at CNBC.com that these new technologies were going to make financial systems invest in order to evolve with this industry and the customer preferences.
This particular bank, in other words, acknowledges that the financial system is changing and so are the customer's preferences. Regardless of the latter, they still refuse to work with digital currencies, exactly like other banks. Citigroup, JP Morgan are some that are not allowing their customers to use their credit cards to buy cryptocurrencies, as stated in Forbes.com. This shocked me because... so much for free will. Regardless of banks' point of view on how crypto works, they can’t ban people from using the products that have been given to them; customers should have the right to decide what they want to spend their money on, and how much they are willing to buy with credit. Merrill Lynch Wealth Management is a wealth management division of the Bank of America, and according to CNBC, “The firm's Merrill Lynch wealth management arm banned its roughly 17,000 financial advisors from buying bitcoin-related investments for clients."
To many people, cryptocurrencies and the way they work under a blockchain has several bank institutions worried because this new technology eliminates the third party... so, bye bye banks.
The Bank of America's chief of operations and technology officer states that digital currencies are nothing new since we have had this with wire transfers. However, she states that the problem is that this is anonymous currency, and that is were there seems to be an issue. She assures that there is a lack of transparency in this crypto world and that banks do provide that... You can watch the full interview at the following link: Why Bank of America is Slamming Cryptocurrencies - CNBC
In an Interview for CNBC, Bank of America's CEO states that cryptocurrency leads to money laundering, illegal behavior, among others – Here is the link to the video: Interview with Bank of America's CEO.
I can see why it's becoming a big deal for these financial institutions, considering how much money is daily being transferred with Bitcoin or, for that matter, considering just the price of one.
Hope you enjoyed it! Feel free to comment.