Bank of America’s Chief Technical Officer Cathy Bessant said today that cryptocurrencies, as a payment system, are in the way of catching bad guys, on CNBC’s “Squawk Box”. She also stated that using cryptocurrencies as investment instruments is a valid personal decision of everyone.
Cathy Bessant thinks that bitcoin and other cryptocurrencies as assets classes can be leveraged by anyone to invest in them, but she clarified that Bank of America does not let people buy stocks with their credit cards, and that they would not let anyone buy cryptocurrencies with their credit cards. When referring to cryptocurrencies as a payment method, she criticised them, saying that it was troubling. She stated:
“THE WAY WE SORT OF QUOTE-UNQUOTE CATCH BAD GUYS IS BY BEING TRANSPARENT IN THE FINANCIAL MOMENT OF MONEY. CRYPTOCURRENCIES ARE DESIGNED TO BE NOT TRANSPARENT”
Cathy finished by saying that the bank system transparency is based on knowing who is the sender and who is the recipient of the money in every transaction, and cryptocurrencies are the antithesis of that idea. Bank of America and its main officers have had an adverse opinion to cryptocurrencies since their creation. They were one of the first banks to ban cryptocurrency purchases with credit cards, making more difficult for its clients to get in the cryptocurrency market. But contradictorily, they are the bank that has been awarded more cryptocurrency related patents, with no less of 45 patents scored just last year.
It seems that Bank Of America or at least its leading officers follow the cliche “bitcoin bad, blockchain good” way of thinking, ignoring that cryptocurrencies are the main application of blockchain technology existing right now. It is clear that cryptocurrencies collide with its business model, and they have also noticed and mentioned them as a possible risk on its annual risk assessment filing this year.