Bank of America: We Hold Blockchain Patents But Can’t Offer Retail Crypto Services

Brian Moynihan, the CEO of Bank of America (BoA), in a recent interview with Yahoo Finance Live, divulged that regulations restrict them from directly participating in crypto despite holding several blockchain patents.

Bank of America Holds Blockchain Patents

During the World Economic Forum event in Davos, Switzerland, Brian added that their blockchain patents exist as a “process, tool, and technology”.

Because of their engagement in payments, where they operate a digitized and highly efficient platform, processing trillions of dollars every day, their foray into cryptocurrencies is limited by existing rules.

While their interest in the technology is evident, it will be impossible for the global bank to offer individual retail accounts because they are compliant with U.S. regulations.

We’re not engaging in accounts for people in cryptocurrency … we’re not allowed to, frankly. Because we’re regulated, and they [regulators] have said you can’t. They’ve said, ‘you have to ask us before you do it and, by the way, don’t ask’ — was the tone. The reality is that we can’t do it by regulation. We’re not really allowed to engage.

Strict Regulation Prevents Banks from Directly Participating

Over the years, cryptocurrencies have transformed to command hundreds of billions in market capitalization. Even though retailers are heavily invested in the technology, the fuzzy state of regulation presents problems.

In the current setup, regulated global banks must seek approval before delving into the industry. It is a fact that the CEO of BoA highlighted in Davos.

Still, considering the active commentary by JP Morgan and BoA analysts on the state of cryptocurrency, global banks are actively monitoring the sphere, giving out their expert opinions.

Crypto is “Too Big” to Ignore

As Bitcoin prices fell to as low as $27k, JP Morgan analysts said the fair value of Bitcoin stood at $38k, suggesting that the coin was undervalued. At spot rates, Bitcoin prices have recovered and are firm above $30k, according to trackers.

Meanwhile, the research team developed by BoA in July 2021 wrote that cryptocurrencies are hard to ignore. BoA analysts also saw a massive opportunity in the metaverse, most of which would be made exciting by NFTs.