The annual report filed by the Bank of America with the SEC (Securities and Exchange Commission) contains a number of economic, geopolitical and operational risks that the bank sees for its activities in the new financial year. For the first time for all the activities of the bank, there were cryptocurrencies in the report.
“Widespread adoption of new technologies in financial services, including cryptocurrencies, could require substantial expenditures in order to adapt to evolving industry standards and consumer preferences” — the document says.
The current demand for cryptocurrencies that have covered virtually all kinds of human activity appears to affect the Bank of America in a bad way, since he has banned any purchases of cryptocurrency for bank card holders since the beginning of this month, even taking into account the risk of losing a certain part of his customers.
“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,” the bank said. Such increased competition may “negatively affect our earnings” or affect “the willingness of our clients to do business with us”, the bank said in a statement.
Nevertheless, Bank of America is actively studying blockchain technology, which is the basis of any cryptocurrency, and has the largest number of patents in this area, namely 45.
Among other risks for banking activities, which cryptocurrency promises, the report also says that such new technologies may limit the ability to comply with the rules of combating money laundering.