If you can't beat them, join them!

Last week Bank of America stated to the Securities and Exchange Commission (SEC) “Our inability to adapt our products and services to evolving industry standards and consumer preferences could harm our business”

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This is the first time a major banking institution publicly admits the risk that cryptocurrencies represent to their current business model. The statement might adapt investor's expectations to prevent a major dip in their stock value after the following Earnings Reports.

"...This can reduce our net interest margin and revenues from our fee-based products and services. In addition, the widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services[.]”

Rather than flagging cryptos as a direct menace that should be eliminated to protect their business, the bank's opinion seems to be that the actual risks relies on not adopting new technologies. Last December BaO recieved a patent for its proposed cryptocurrency exchange system, joining other 70 patents that can incorporate blockchain applications for processes needed to incorporate the technology into the banking business.

BaO has been criticized for taking these measures while simultaneously blocking cryptocurrency purchases by credit card, but as discussed on my previous post, that movement is aimed to prevent their customers from losing the bank's money and not being able to pay back due to high cryptocurrency market volatility.

For a long time money has been contained to traditional fiat currency, but times are changing and this might not be the case for much longer. Bank's business runs around money, and there is no reason to strictly stick to the one issued by central banks if cryptocurrencies become a major player in the global economy.