By: Carolina Pérez
There is no doubt that banks are at the top of the list when it comes to Cryptocurrency enemies. I was not very aware that many banks in the United States and Europe are banning credit card use for purchasing crypto. If certain banks are banning and taking such measures, there has to be a reason, but with all information online I guess everyone will have to take a side on what to believe.
Bank of America has been very outspoken about their feeling on cryptocurrency. Last Februarys 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 said. Such increased competition may "negatively affect our earnings" or affect "the willingness of our clients to do business with us." In addition to stating that these new technologies were going to make financial systems invest in evolving with this industry and customer preferences - CNBC.
This particular bank, in other words, acknowledges that the financial system is changing, and so are the customer's preferences, but regardless they still refuse to work with digital currencies like other banks: Citigroup, JP Morgan who are not allowing their customers to use their credit cards to buy cryptocurrencies – Forbes. This shocked me, because so much for free will. Regardless of what the banks view on how crypto works, it can't ban people on using the products that have been given to them, and customers should have the right to decide what they want to spend there money and how much they are willing to buy with credit. Merrill Lynch Wealth Management is a wealth management division of 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”.
For many, cryptocurrencies and the way it works under a Blockchain has several bank institutions worried because this new technology eliminates the third party, so bye bye banks.
Bank of America's chief of operations and technology officer, states that digital currencies are nothing new because we have had this with transferring money. She believes the problem is that this is an anonymous currency and that seems to be an issue, she assures that there is a lack of transparency in this crypto world and that bank do provide that – you can watch the full interview on Youtube.
In an Interview for CNBC Bank of America CEO, states that cryptocurrency leads to money laundering, illegal behavior among others – Watch Video.
I can see why it's becoming a big deal for these financial institutions considering how much money is being transferred daily with bitcoin or for that matter the price of one.
Hope you enjoyed it, feel free to comment.
Originally posted on DavinciCodes.net