The world’s major banking institutions, however begrudgingly, may be starting to change their tune on the legitimacy of cryptocurrencies. Though not surprising, this shift is rooted in the most selfish of reasons — survival.
Last week, in an annual report filed with the U.S. Securities and Exchange Commission, Bank of America acknowledged that the growing acceptance of digital assets like bitcoin poses a major threat to its business model.
“Technological advances and the growth of e-commerce have made it easier for non-depository institutions to offer products and services that traditionally were banking products,” the report authors write, noting that this increased competition could “reduce our net interest margin and revenues.”
Indeed, Bank of America, which recently barred its customers from using credit cards to purchase cryptocurrencies, seems very much concerned that this “widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems” could have it falling out of favor with customers if it doesn’t adapt to the changing landscape: