Bank of America considers crypto currency as a threat to its business modelFebruary 24, 2018
Bank of America, one of the largest financial institutions in the world, pointed out in its annual report that crypto-currencies pose a threat to business.
The report, which was dated 22 February and filed with the US Securities and Exchange Commission (SEC), lists a number of economic, geopolitical and operational risks faced by the bank in Charlotte, North Carolina, when it heads the new fiscal year. For the first time in the list there was an increase in the use of crypto currency.
"Customers of the bank can conduct business with market participants who are involved in a speculative or risky business, such as crypto-currencies", The report says.
The second largest bank in the United States in terms of assets, said that the widespread use of crypto currency may require the bank "significant costs" to upgrade existing services in order to remain competitive.
"The widespread introduction of new technologies, including Internet services, virtual currencies and new payment systems, may require significant costs for the modification or adaptation of existing products and services", – the report says.
In addition to these threats for their business model, Bank of America management reported that digital currencies and other innovative technologies may limit the institution's ability to comply with the rules for combating money laundering.
Author: Olga Novikova, Analyst Freedman Club Crypto News
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