Bank of America CTO Re-justifies Ban on Bitcoin With BoA Credit Cards
BoA sees use of cryptocurrencies a burden to payment systems
The Bank of America CTO Cathy Bessant sees use of cryptocurrencies a burden to payment systems. On 10th May 2018, she stated digital currencies are “troubling”, re-justifying the bank’s decision to ban the purchase of Bitcoin and other cryptocurrencies using bank’s credit cards.
Bessant during a discussion in Squawk Box segment at CNBC stated that digital currencies are “designed to be not transparent” and as a result makes it difficult to catch “bad guys.”
She did an explanation during the program about the crypto transaction system. She believes the cryptocurrency payment system is troublesome and not so much transparent in comparison to the conventional banking system set up;
As a payment system, I think it’s troubling, because the foundation of the banking system is on the transparency between the sender and the receiver, and cryptocurrency is designed to be nothing of the sort. In fact, it is designed to be not transparent.
Bank of America initial crypto purchase ban
Bessant still sees cryptocurrencies as the complete opposite when it comes to transparency in financials. She mentions that, “the way we sort of quote-unquote catch bad guys is by being transparent in the financial moment of money. Cryptos is the antithesis of that”;
Just like we don’t allow stocks to be purchased on our credit cards, we’re not going to allow cryptos or other currencies to be purchased on our credit cards.
However, the customers of BoA can invest in cryptocurrencies without any issue. It is only that customers are unable to purchase cryptocurrencies and stocks through the use of credit cards. The bank is also, working in improving the security systems to prevent fraud.
The BoA published a report, several weeks later following the ban. The report conversely detects the potential risks to the business in future, showing the firm’s “inability to adapt” against digital currencies in the face of competition.