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Is Cryptocurrency Threatening Earnings at Bank of America? (thenextweb.com)

Posted by EditorDavid on from the money-in-the-bank dept.

An anonymous reader quotes The Next Web: One of the world's largest financial institutions admitted in its annual report that cryptocurrency is a looming threat to its business model. According to a report filed with the SEC by Bank of America, "Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies. Increased competition may negatively affect our earnings by creating pressure to lower prices or credit standards on our products and services requiring additional investment to improve the quality and delivery of our technology and/or reducing our market share, or affecting the willingness of clients to do business with us."

4 of 49 comments (clear)

  1. Before everyone gets too excited by rsilvergun · · Score: 4, Interesting

    They're required by law to call out any and all risks in these statements, no matter how remote. Also, the big worry is not so much serious competition from crypto currencies but that they might have to spend money responding to them. Bank of America, like most major US banks, has more than enough power to reign crypto currencies in before they're any real threat to them.

    My point is, don't go expecting crypto currencies to shake up out monetary and/or banking system to any real degree. If you want to see meaningful change you need to get behind guys like Dylan Ratigan.

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    1. Re:Before everyone gets too excited by Anonymous Coward · · Score: 2, Interesting

      They're required by law to call out any and all risks in these statements, no matter how remote. Also, the big worry is not so much serious competition from crypto currencies but that they might have to spend money responding to them. Bank of America, like most major US banks, has more than enough power to reign crypto currencies in before they're any real threat to them.

      In addition, BofA called out why they're not currently a real threat too, with the 'speculative' line. Is it possible cryptocurrency could become huge for real? Yes. Is it possible when your non-technical Facebook friends are going all frenzy without knowing what "cryptocurrency" means? Nope. BofA knows this. They'll know when to take it seriously.

  2. Re:I don't partake in cryptocurrencies but by amiga3D · · Score: 4, Interesting

    Bank of America is the worst bank ever. I've never seen anything that bad in my 58 years on this earth.

  3. Re:I don't partake in cryptocurrencies but by humankind · · Score: 4, Interesting

    Another reason is, Bank of America is actively patenting crypto currency schemes. The natural progression isn't for traditional banks to become more crypto-like, it's for crypto to become more centralized and they're taking steps to do so, and listings like this notify their shareholders they're going to spend some resources to get their fingers into this market... on their own terms.