Bank of America, Citigroup, Wells Fargo Unveil Their Cryptocurrency Policies
With cryptocurrency as the new rage, banks are now becoming more comfortable with the digital asset’s potential. Bank of America is now making plans to launch their cryptocurrency called “MyBank”, Citigroup is planning to release their own cryptocurrency called “Citicoin” as well as Wells Fargo who have plans to release their own cryptocurrency called “Wells Fargo Coin”. Each bank has their own reasons as to why they are choosing to launch their own cryptocurrencies.
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On Saturday, Bank of America, Citigroup, and Wells Fargo announced their cryptocurrency policies. The policies, which will take effect on January 14, 2018, will limit the ability of customers to buy cryptocurrencies with their credit cards. The new policies were released as the price of Bitcoin reached an all-time high of around $15,000.
Cryptocurrencies have long been seen as the currency of the dark web, used by drug dealers, pornographers, and those who traffic in illegal items and activities. But that doesn’t mean they don’t have a place in the light web. Banks have been hesitant to accept cryptocurrencies, mostly due to fears about how the currency could be used and their legal status. They’ve largely remained on the sidelines while cryptocurrencies have taken off, and are only now starting to address the issue.
Bank of America, Citigroup and Wells Fargo have set out their policies on crypto-currencies before the US Senate Banking Committee. These three banks are at different stages of offering cryptocurrency services to their customers. They also lag behind some of their competitors like Morgan Stanley and Goldman Sachs when it comes to providing access to investing in bitcoin or other cryptocurrencies.
Bank of America assesses opportunities for cryptocurrencies
Last week, executives from Bank of America, Citigroup and Wells Fargo testified before the Senate Banking Committee about cryptocurrencies. A committee led by Senator Sherrod Brown has called investment bankers to an annual hearing on the oversight of Wall Street firms. Bank of America CEO Brian Moynihan said BofA is staying away from bitcoin and other cryptocurrencies as the bank continues to evaluate opportunities, risks and customer demand for cryptocurrency products and services. He pointed out that his bank has more than 60 blockchain-related patents: We have not yet found a large-scale application. An executive from Bank of America confirmed Currently, we do not lend against cryptocurrencies or fund companies primarily engaged in cryptocurrencies or in facilitating trading and investment in cryptocurrencies. A Bank of America analyst said in January that bitcoin was the mother of all bubbles. Yet in the bank’s latest survey of fund managers, long bitcoin was the most popular transaction. The bank said in March that the only compelling reason to hold bitcoin is to drive up the price. Senator Brown is skeptical of crypto-currencies. He recently sent a letter to the new acting Comptroller of the Currency, Michael Hsu, urging him to review the regulation of cryptocurrencies under the Office of the Comptroller of the Currency (OCC).
Citigroup uses a measurement method for cryptography
Jane Fraser, CEO of Citigroup, said her company takes a measured approach to cryptocurrencies as the bank seeks to understand the evolution of digital assets and the use of distributed ledger technology, including customer demand and interest, regulatory changes and technological developments. A Citi executive noted: Before working with cryptocurrencies, we feel it is our responsibility to provide clear guidance and oversight. Citigroup is reportedly planning to launch cryptocurrency services as the company sees interest in bitcoin growing very quickly. Citigroup said in March that bitcoin was at a turning point and could become the currency of choice for international trade.
Wells Fargo CEO Charles Scharf said his company is about to announce a pilot project that uses blockchain technology to process internal bookings for cross-border payments across its global branch network. But when it comes to cryptocurrencies, he said: We continue to closely and actively monitor developments around cryptocurrencies, which have emerged as alternative investment products, although their status as a currency and payment mechanism is still evolving. 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 believe the cryptocurrency has reached the stage of development and maturity where it can now be a viable investment vehicle, the top executive believes. When do you think these three banks will accept crypto-currencies? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.There has been a lot of speculation about whether banks will adopt cryptocurrency and how banks will react to cryptocurrency; until now, however, no noteworthy financial institutions have announced plans to adopt cryptocurrency. Today, Bank of America, Citigroup, and Wells Fargo have announced their own cryptocurrency policies, each with its own nuances.. Read more about bofa bitcoin and let us know what you think.
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