Bank of America, Citigroup and Wells Fargo have shared their policies regarding cryptocurrency before the US Senate Banking Committee. The three banks are in various stages of providing crypto services to their customers. They also lag behind some of their peers, such as Morgan Stanley and Goldman Sachs, in providing access to investments with the risk of bitcoin or other cryptocurrencies.
Bank of America evaluating crypto opportunities
CEOs of Bank of America, Citigroup and Wells Fargo gave their testimony on cryptocurrency before the Senate Banking Committee last week. The committee, headed by Senator Sherrod Brown, called on investment bankers for their annual monitoring hearings on Wall Street firms.
Bank of America CEO Brian Moynihan said BofA was staying away from bitcoin and other cryptocurrencies as the bank “continued to evaluate the opportunities, risks and customer demand for cryptocurrency-related products and services.” Noting that his bank has more than 60 blockchain-related patents, he emphasized, “We still haven’t found a large-scale use case.” Bank of America executive confirmed:
Currently, we do not lend against cryptocurrency nor lend to companies whose primary business is cryptocurrency or facilitate cryptocurrency trading and investment.
Bank of America analyst said in January that bitcoin “Mother of all bubbles“However, the most recent fund manager survey of the bank was seen”Long bitcoin“As the most crowded business. In March, the bank said that the only good reason to hold bitcoin”Sheer price appreciation. “
Senator Brown suspects cryptocurrency. They recently Sent a letter The new Acting Controller of Currency, Michael Hsu, urged them to review the cryptocurrency regulation within the ambit of the Office of the Comptroller of the Currency (OCC).
Citigroup taking measured approach to crypto
Citigroup CEO Jane Fraser talked about her company taking a “measured approach” to cryptocurrency as the bank delivered “changes to the digital asset space and demand and interest by our customers, including regulatory growth and technology advancements. “Seeks to understand the use of technology.” The City Executive noted:
Before we engage with cryptocurrency, we see it as our responsibility to ensure that we have clear governance and control.
Citigroup reportedly plans to launch Crypto services As the firm sees “very rapid” accumulation of interest in bitcoin. In March, Citigroup says bitcoin was at one at tipping point And can become the preferred currency for international trade.
Wells Fargo Is Taking a Closer Look at the Crypto Space
Wells Fargo CEO Charles Sharf said his company was close to announcing a pilot project using blockchain technology “to complete internal book transfers of cross-border payments within our global branch network”. However, in the context of cryptocurrency, he said:
We continue to closely and actively follow developments around cryptocurrency, which have emerged as alternative investment products, although their status as currency and payment arrangements remains fluid.
Darrell Cronk, president of the Wells Fargo Investment Institute said Last week that his firm is in the final stages of adding an actively managed cryptocurrency investment strategy to its platform. “We think the cryptocurrency space has influenced the growth and maturity of its growth which now allows it to become a viable investable asset,” the executive said.
When do you think these three banks will adopt cryptocurrency? Let us know in the comments section below.
Image credit: Shutterstock, Pixabay, Vicky Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell a product, services, or companies, or a recommendation or endorsement of a product, services, or companies. Bitcoin.com Does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any materials, goods or services mentioned in this article.