It isn’t shocking that cryptocurrency, the new hot trend on the scene is threatening a lot of the established financial institutes who have seen few worries and no competition in the past few decades. That said, Bank of America has exposed their own vulnerability when they stressed the threat that cryptocurrency is posing to them.
At an annual 10-K filing with the U.S. Securities and Exchange Commission on Thursday Bank of America officials stressed that, “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 officials further stated that the increase in competition will have a gloomy impact on their earnings and also the willingness on your customers who do business with them.
Obviously nervous about losing their top slot on the top, Bank of America didn’t hesitate to state that the widespread embrace of cryptocurrencies will possibly require substantial expenditures if they hope to adapt to industry standards and customer preferences.
The past couple years has a cryptocurrency craze has taken the world by storm. Countries have made their own cryptocurrencies, companies are opening themselves up to cryptocurrency transactions and everyone is on edge with wonders concerning what the next big coin will be. This is a world that Bank of America has neglected to be apart of. Merrill Lynch, the bank’s wealth management arm has banned over 17,000 advisors from purchasing bitcoin-related investments for their clients. Furthermore just earlier this month Bank of America banned customers from using their credit cards to purchase cryptocurrencies.
What’s even more frightening for them is blockchain technology. Given it pretty much eliminated the need for banks by providing a s secure, instant and permanent record of transactions, this innovation threatens the existence of major financial firms everywhere.