Last Updated: 31 May 2021
The US Senate Banking Committee was presented with the cryptocurrency policies from Bank of America, Citigroup, and Wells Fargo. All of these banks are working to offer cryptocurrency-related services to their clients. As of now, these three banks are behind Goldman Sachs and Morgan Stanley as these two are offering their clients investment opportunities in Bitcoin and other cryptocurrencies.
How is Bank of America Formulating Cryptocurrency Policies?
Last week, Bank of America and Citigroup and Well Fargo presented their plans regarding cryptocurrency before the US Senate Banking Committee. Senator Sherrrad Brown was the head of this committee who summoned the investor bankers for an annual report on Wall Street Firms.
Brian Moynihan, the CEO of Bank of America, said that the Bank wasn’t interested in cryptocurrencies in the past. With time, the Bank started evaluating risks and opportunities associated with the cryptocurrency on demand of its clients for products and services. Bank of America currently holds 60 blockchain-related patents. According to the CEO, the Bank won’t be dealing or offering its services to those customers or organizations whose primary business is a cryptocurrency or cryptocurrency investment and trading.
In a statement in January, the Bank of America said that Bitcoin is the mother of all bubbles. The Bank’s fund manager conducted a survey showing that long bitcoin is the future of cryptocurrency investment. Sheer Price Appreciation is the only good reason for holding Bitcoin, the Bank said in January.
Senator Brown sent a letter to Michael Hsu, the new Acting Comptroller of the Currency. In this letter, the Senator said that the office should review the cryptocurrency regulations.
Citigroup’s Cryptocurrency Policies
Jane Fraser, the CEO of Citigroup, has revealed that the company is formulating new strategies regarding Citigroup. The Bank has seen the recent development in cryptocurrency and how it can be a digital replacement for traditional money. The Bank also kept customer’s demand and interest in check before setting up these policies. The CEO explained that it is essential to have governance and controls before engaging with cryptocurrency.
Reportedly, Citigroup plans to launch crypto services to start trading with Bitcoin. The CEO said that Bitcoin would be a go-to option for the company to start international trade.
Wells Fargo Analyzing Cryptocurrency Market
Charles Scharf, the CEO of Wells Fargo, said that his company is soon to start blockchain technology, which will allow its customers to complete inter-bank transfers and foreign transactions within this global network. The company also focuses on paying close attention to cryptocurrency as an alternative to traditional payment methods and investment opportunities.
Last week, the Wells Fargo Investment Institute President, Darrell Cronk, said that his company has almost completed the final steps of adding an actively managed cryptocurrency investment strategy. According to Darrell Cronk, cryptocurrency has evolved into an investment asset that can’t be ignored now.