Brian Moynihan, Bank of America’s CEO stated his opinions about the peril that the latest rise of cryptocurrencies represents. This happened yesterday at a conference that was hosted by the Massachusetts Institute of Technology, where also Adena Friedman, NASDAQ CEO was present, according to an article by Bloomberg.
In the conference, he made remarks about how non-supported and anonymous currencies have no warrant of being always accepted and raised its concerns about cryptocurrencies being used for illicit purposes. About this he stated:
THE IDEA OF ANONYMOUS CURRENCIES JUST NEVER TURNED OUT TO BE A GOOD THING, YOU HAVE A POTENTIAL RISK
He also raised concerns about those currencies being used as non regulated means of moving big sums of money without government authorization or supervision, possibly with the objective of laundering money. He declared:
HIGHER-DENOMINATION BILLS DON’T EXIST PARTLY BECAUSE OF CONCERN THEY COULD BE USED TO MOVE LARGE SUMS OF ILLICIT MONEY. DIGITAL CURRENCIES COULD FILL THAT GAP IF THEY OFFER THEIR USERS ANONYMITY.
Nasdaq CEO, Adena Friedman also talked about the perils of investing in the current Initial Coin Offering bubble, and the high possibility of being scammed and lose money on it, due to the lack of basic guarantees and protection. This week, in a program on CNBC, she also affirmed that ICOs should be treated as securities to protect investors and that they should be regulated as such.
Brian and Bank of America have had a negative opinion and consideration of the cryptocurrency market and cryptocurrencies. Earlier this year, Bank of America was one of the first banks that banned the possibility of buying cryptocurrencies with credit cards, a ban that extends till today. Bank of America has made repeated calls to be cautious with cryptocurrencies, going to the extreme of excluding themselves from the business of trading via its wealth management arm, Merrill-Lynch. But ironically, they also have mentioned in reports that cryptocurrencies pose a threat to its business model.