Bank of America, Citigroup and Wells Fargo shared their policies on cryptocurrency before the U.S. Senate Banking Committee. The three banks are at different stages of providing encryption services to customers. They also lag behind their counterparts such as Morgan Stanley and Goldman Sachs in providing investment pathways for exposure to Bitcoin or other cryptocurrencies.

Bank of America assesses cryptocurrency opportunities

Last week, the chief executives of Bank of America, Citigroup and Wells Fargo gave testimony on cryptocurrencies before the Senate Banking Committee. A committee led by Senator Sherrod Brown called investment bankers to conduct an annual supervisory hearing on Wall Street companies.

Brian Moynihan, Chief Executive Officer of Bank of America (Brian Moynihan) stated that as the bank continues to “evaluate the opportunities, risks, and customer needs of cryptocurrency-related products and services, Bank of America maintains its relationship with Bitcoin and other cryptocurrencies. Distance.” He emphasized that his bank has more than 60 blockchain-related patents. “We have yet to find large-scale use cases.” Bank of America executives confirmed:

Currently, we do not provide any loans for cryptocurrencies, nor do we provide banking companies whose main business is cryptocurrencies or promote cryptocurrency transactions and investments.

Bank of America analysts said in January that Bitcoin is the “mother of all bubbles.” Despite this, the bank’s latest fund manager survey still regards “Long Bitcoin” as the most crowded transaction. The bank said in March that the only good reason for holding Bitcoin was “pure price appreciation.”

Senator Brown is skeptical of cryptocurrencies. He recently sent a letter to the new Acting Currency Comptroller, Michael Hsu, urging him to review cryptocurrency regulations within the purview of the Office of the Comptroller of Currency (OCC).

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Citigroup takes a measurable approach to encryption

When Citigroup CEO Jane Fraser talked about her company’s “planned approach” to cryptocurrencies, the bank tried to “understand the changes in the digital asset space and the use of distributed ledger technology, including Customer needs and interests, regulatory development and technological advancement. “Citi executives pointed out:

Before using cryptocurrency, we regard it as our responsibility to ensure that there is clear governance and control.

According to reports, Citigroup plans to launch encryption services because the company has seen interest in Bitcoin “very rapidly” accumulating. Citigroup stated in March that Bitcoin is at a turning point and may become the currency of choice for international trade.

Wells Fargo pays close attention to the crypto space

Wells Fargo CEO Charles Scharf stated that his company is about to announce a pilot project using blockchain technology “to complete internal book transfers of cross-border payments within our global branch network. “. However, in terms of cryptocurrency, he said:

We continue to pay close attention to the development of cryptocurrency. Although its position as a currency and payment mechanism is still unstable, cryptocurrency has emerged as an alternative investment product.

Darrell Cronk, president of the Wells Fargo Investment Institute, said last week that his company is in the final stages of adding an actively managed cryptocurrency investment strategy to its platform. The executive said: “We believe that the cryptocurrency field has just gone through its evolution and maturity, making it now a viable investable asset.”

When do you think these three banks will adopt cryptocurrency? Let us know in the comments section below.

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