Bank of America customers waiting for a cryptocurrency offering from the bank will be disappointed after its CEO rejected the idea.
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Speaking at the World Economic Forum (WEF) in Davos, Brian Moynihan revealed that the bank has no plans to explore crypto products at the moment.
He made his position known in an interview with Yahoo Finance and gave an assertive “No” to the question.
“By regulations, we are not allowed to participate,” he said. Moynihan claimed that the financial institution was not missing out on the madness of cryptocurrencies, since it has its own things.
Bank committed to technology blockchain
“We have hundreds of patents on blockchain as process, tool and technology, and if you think about the process of digital movement of money, 60% of our consumers they already move money digitally,” Moynihan said.
He added that the bank is fully digital but does not need cryptocurrencies to offer modern financial services.
“The most important thing is to help consumers in the United States have a successful financial life,” he said. “Our Life Plan financial planning tool only started three years ago. That’s the thing to do, get people to learn how to make their money work harder to help them in their lives.”
Wall Street has seen several institutions turn to cryptocurrencies in the last 12 months. In March, BNY Mellon landed a major crypto custody deal for the USDC stablecoin, and last year the bank created a crypto-focused digital assets unit.
Goldman Sachs jumped into the world of cryptocurrencies and now offers a bitcoin-backed lending service, while JPMorgan has made its mark in the cryptocurrency space. The investment bank announced its optimism on digital assets over other asset classes, hinting at a big push in the sector.
“Therefore, we replace real estate with digital assets as our preferred alternative asset class alongside hedge funds,” the bank said.
His interest in cryptocurrencies comes at a time when asset prices they are in massive decline. Bitcoin (BTC) fell below the $30,000 mark and bears are predicting even worse days for the entire ecosystem.
Guggenheim’s Scott Minerd argued that a crypto winter could see BTC drop to $8,000.
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