Bank of America admits that cryptocurrencies pose a threat to its business model

ZODIAQ
ZODIAQ
Mar 2, 2018 · 2 min read
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According to the Financial Times, Bank of America considers cryptocurrency to be a threat to its business model. This information appeared in the annual report filed with the Commission on Exchanges and Securities (SEC) on February, 22.
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” the report states.
First of all, concerns are prompted by the fact that competition in the fintech market is getting more and more intense. At the same time, development and implementation of fintech innovations, that would allow Bank of America to remain competitive, require substantial expenses, since the bank needs to adapt and modify its existing services and products.
The report also points out that new technologies may inhibit the compliance with anti-money laundering regulations.

On February 26 Goldman Sachs, following Bank of America, also included bitcoin and other cryptocurrencies in the list of the company’s business risks.

Erik Shekhmametev, COO at ZODIAQ, comments on the news:

Zodiaq

EXISTING CRYPTOFIAT BANK ∙ FUND ∙ EXCHANGE ∙ PAYMENT SYSTEM

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