Bank of America, one of the world’s largest financial institutions, announced that the cryptocurrency is a threat to their business model.
This report, submitted to the Securities and Exchange Commission (SEC) dated February 22, where cryptocurrency was listed for the first time.
In order to adapt to evolving industry standards and consumer preferences, the spread of new technologies in financial services including cryptocurrency is noted as “there is a possibility that a large expenditure may be needed”.
Banks recently prohibited purchasing cryptocurrency using credit cards said that such a similar policy could put a burden on corporate customers.
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.
They also said,
The widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services
In addition to these basic threats to the business model, Bank of America also said
Emerging technologies, such as cryptocurrencies, could limit our ability to track the movement of funds. Our ability to comply with these laws is dependent on our ability to improve detection and reporting capabilities and reduce variation in control processes and oversight accountability.
This is only a part of the bank’s annual report over the years, but financial institutions are beginning to worry about the spread of cryptocurrency that are becoming real.
But this has been known for many years. However, so far, banks have abandoned the development of these technologies into functional products, and the use of the spreading cryptocurrency was announced as “unlikely to happen”. While some bank recently was issuing its own cryptocurrency.
This report would mean that financial institutions no longer can declare that the cryptocurrency is not a threat.
Source : CCN