Bank of America in his annual report to SEC admits that increasing cryptocurrency adoption are posing a threat to the financial institutions. The growing popularity of bitcoin among other digital currencies has led BofA to join the ranks of banks that are preventing their customers to use credit cards to buy cryptocurrencies.
Cryptocurrency adoption poses a question over survival of banks
In an annual regulatory filing to the Securities and Exchange Commission (SEC), the Bank of America, the second largest bank of America stated that cryptocurrencies are posing a serious threat to it. The speculations have always been raving regarding cryptocurrencies like bitcoin presenting a threat to traditional large financial institutions.
In the filing, the bank wrote:
“The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.”
In addition to this, it has also been stated that cryptocurrencies also presents the challenge to track the customer funds’ movement, in turn, making compliance with regulations difficult.
