Bank Of America Referred Cryptocurrency As Business Risk In It’s Annual Report
Feb 27, 2018 Posted / 5926 Views
Bank of America was founded in the year 1904 under the moniker of Bank of Italy. The bank has over 2,00,000 employees and has recorded over $87 billion revenue in 2017. It is the second largest bank of America, and like all other banks BOA submitted its annual report to the U.S. Securities and Exchange Commission(SEC) where the bank acknowledged the number of threats that can affect the dominance of Financial body, and cryptocurrency was one of the listed menaces.
The BOA submitted its report with few exciting titbits for crypto investors where cryptocurrency was mentioned thrice in the section of Risk Factors.
“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 the report, the bank enclosed its Financial status and outlined possible threats to its business model as-
“We face significant and increasing competition in the financial services industry,”
The report further stated-
“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.”
In its 90-page report, the below-mentioned statement is the most intriguing mention about Virtual tokens-
“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…We might not be successful in developing or introducing new products and services… [and] reducing costs in response to pressures to deliver products and services at lower prices or sufficiently developing and maintaining loyal customers.”
The Bank of America is not threatened of enhancing prevalence of crypto. Instead, the institution is acknowledging the possible impingement of circulation of digital coins on the banking system. But the attitude of BOA towards Bitcoins is still not evident because of recent data where BOA secured top position in a list of companies with the most cryptocurrency patents.
If major banks consider lowering their charges in response to prevailing competition, including cryptocurrencies, then many crypto investors can consider it as their tiny victory.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.