In a report dated February 22nd and addressed to the US Securities and Exchange Commission (SEC), the bank cited various aspects as it starts a fresh fiscal year. Key among the issues is the widespread acceptance of cryptocurrency in the business world. The financial institution wrote that the widespread adoption of cryptocurrency could lead to the loss of clients in the future.
Clients may prefer to do business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies,
– Said the bank in the report.
In the report, the bank agreed that the recent cryptocurrency and fintech innovations craze will force it to reconsider its business model. A CCN report indicates that the bank will have to endure substantial expenditures to enhance its services and remain competitive in the wake of upstart companies. “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,” reads part of the bank’s report.
Making Operations Difficult
Apart from being a threat to its business model, the bank argued that the widespread use of cyptocurrencies and the ever-changing technology makes it difficult for the financial institution to conform to the anti-money laundering laws.
Emerging technologies like cryptocurrencies is making it hard for us to track the movement of money. For us to conform to these laws requires us to enhance our capacity for detection and reporting capabilities as well as the oversight modalities,
-Says the report.
With this approach in mind, it is less surprising that the Bank of America has barred its customers from using credit cards to purchase cryptocurrencies, the reason being; ‘we are just cautioning our customers to be careful and avoid losing money.’ Perhaps it’s time for the banks to be careful themselves.
While this was just a small part of the Bank’s extensive annual report, it is a sign that the majority of financial entities are concerned about the widespread acceptance of cryptocurrencies in the world, if there is a genuine threat to their business.
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