Brian Moynihan (BoA CEO) has said that it is not on the bank’s agenda to start providing crypto-related services for the foreseeable future. Moynihan was responding to questions during the recent World Economic Forum held in Davos. He gave a direct negative answer to a Yahoo Finance reporter asking him whether BoA will soon start offering crypto services.
Moynihan further said, “the current regulations don’t allow us to start offering such a service.” He also said, “we have what we do as a financial firm. So, we aren’t missing out on anything if we aren’t offering crypto services.”
60% Of Our Clients Move Money Digitally Without Cryptos – BoA CEO
According to the BoA CEO, 60% of the bank’s clients are moving digitally without cryptos. However, he noted that the bank has lots of patents built with blockchain technology. Then, he added that some of them are a tool, a bridge, and a stand-alone app.
He also said the bank wouldn’t need to start offering crypto services before it could be a fully digital bank or a modern financial service firm. “Our major objective is to assist our clients in achieving a financially rewarding life.”
“One of the ways we are helping is through the life plan tool. It is a financial planning tool we launched in 2020,” Moynihan concluded. According to Moynihan, making people understand how they can make their money work for them without a lot of their involvement is important. Hence, it should be the goal of any responsible financial service firm.
Wall Street Firms Are Making Crypto Moves
Several financial service firms on wall street have launched several crypto services within the past 12 months. BNY Mellon established a new department that will solely offer crypto services. Also, the bank and USDC stablecoin issuers (Circle) struck a crypto custody deal earlier this year.
Last month, Goldman Sachs started a BTC-backed lending facility. JPMorgan has been making various impressions in the crypto sector. After a recent announcement, the bank hinted at making a foray into the crypto sector. The investment bank announced that digital assets and hedge funds are now more important than real estate as alternative investment options.
JPMorgan’s crypto interest comes at a time of massive decline in the prices of digital assets. BTC continues to trade around the $30K mark. It still trades at more than 51% off its peak price set last November.
Many analysts still predict that BTC’s price will still trade lower than its current price. However, they agree that it will still make an uptrend reversal. One of Guggenheim’s top crypto analysts, Scott Minerd, made his opinion about BTC’s price recently. He stated that the leading digital asset would still trade at $8K before making any upside move.
Apart from banks offering crypto services, many investors have also been increasing their BTC holdings during this crypto winter. Their interest in increasing their BTC holdings shows they have confidence in the long-term value of the digital asset.
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