Cryptocurrency News

Bank cautious about crypto cautious before COVID-19 testimony before US Senate

Key officials of the Wall Street Bank will appear before the United States Senate Banking Committee on Wednesday to discuss the role of their financial institutions in the recovery of the US economy.

Democratic lawmakers plan to grill several major bank execs whose firms saw record profits during the COVID-19 epidemic, while average Americans struggle to meet.

In ready evidence Posted On Tuesday, CEOs of Bank of America, Citigroup and Wells Fargo described their respective banks’ reactions to key challenges such as inequality, diversity, climate change, taxes, as well as how their banks handle cryptocurrencies.

This year saw a record bull run in the cryptocurrency markets as major financial institutions opened to digital assets, adding trading desks and a custody wing to handle client interests in major cryptos such as bitcoin (B T c)

In his testimony, Bank of America CEO Brian Moynihan said The bank continues to evaluate the benefits, risks, and customer demand for crypto-related products and services. “Currently, we do not lend against cryptocurrency and do not bank companies whose primary business is cryptocurrency or cryptocurrency trading and investment facilities,” he said.

Moynihan said BofA is also assessing new technologies such as distributed laser technology that could potentially provide value to the bank’s customers. However, while BofA has more than 60 blockchain patents, the bank still “has not received a large-scale use case,” Moynihan said.

Similarly, Citigroup CEO Jane Fraser also outlined a measured approach to crypto, by stating The bank will need to ensure clear control and governance before engaging with cryptocurrency. Fraser wrote, “Citi is focusing resources and efforts to understand the changes in the digital asset space and the use of distributed laser technology, including the demands and interest of our customers, regulatory development, and technology advances.”

Wells Fargo CEO and President Charles Scharf said That the company is closely following developments around cryptocurrency. “Digital assets” have emerged as alternative investment products, said Sharff, although their status as currency and payment systems remains fluid. “The executive also noted that within Wells Fargo Bank’s global branch network Preparing to start a pilot for a blockchain-based settlement service.

The Senate Banking and House Financial Services Committee will also hear from CEOs of JP Morgan, Goldman Sachs and Morgan Stanley. The latter two Started I amFake Crypto Services Earlier this year, while the former is reportedly considering Opening a crypto trading desk.