Bank of America CEO Brian Moynihan has indicated that the U.S. banking sector is ready to embrace cryptocurrencies for payments, contingent upon regulatory approval. During a conversation with CNBC's Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland, Moynihan revealed the bank's position on digital currencies amidst President Donald Trump's growing enthusiasm for the technology. He highlighted the bank's extensive preparation for potential entry into the blockchain domain.
Moynihan explained that American banks have largely restricted customers from using cryptocurrencies for retail transactions. Despite this cautious approach, the institutional trading and wealth management divisions have been active in markets for bitcoin exchange-traded funds (ETFs). Moynihan emphasized the bank's readiness to engage with blockchain technology, citing their possession of hundreds of patents in the field.
"We have hundreds of patents on blockchain already, we know how to enter the field." – Brian Moynihan
Moynihan's remarks underscore a significant shift in the banking industry's stance towards cryptocurrencies as a payment method. He implied that the sector is prepared to adapt to evolving regulations and technologies. He articulated a clear vision for how cryptocurrencies might integrate into traditional payment systems.
"If you go down the street here and you go in and buy lunch, right, if you can pay with Visa, Mastercard, a debit card, Apple Pay, etc., this would just be another form of payment." – Brian Moynihan
The CEO further elaborated on the potential transformation of the financial landscape, pointing out that the banking system would actively participate in crypto transactions once regulatory frameworks are established.
"If the rules come in and make it a real thing that you can actually do business with, you'll find that the banking system will come in hard on the transactional side of it." – Brian Moynihan
Despite his optimism about crypto payments, Moynihan chose not to delve into the debate about cryptocurrencies like bitcoin as an investment or store of value, describing it as a "really separate question." This stance is notable given ongoing criticism from industry leaders such as JPMorgan Chase CEO Jamie Dimon, who have criticized bitcoin as a tool for criminal activity.