Bank of America, Wells Fargo and Citigroup share their views on cryptocurrencies

Last week, before the Senate banking committee headed by Senator Sherrod Brown, the chief executive officers of Bank of America, Citigroup and Wells Fargo, summoned for the annual oversight hearing on Wall Street firms, delivered their testimonies regarding cryptocurrencies.

Starting off, Brian Moynihan of Bank of America revealed they have been keeping their distance on bitcoin and other cryptocurrencies while they continue to determine the opportunities, risks, and client demands for products and services related to them. While his bank possesses more than 60 blockchain-related patents, they still haven’t “found a use case at scale.”

“Currently, we do not lend against cryptocurrencies and do not bank companies whose primary business is cryptocurrency or the facilitation of cryptocurrency trading and investment,” said the Bank of America executive in his testimony.

Citigroup and its approach

Jane Fraser, CEO of Citigroup, meanwhile, said their bank is on “measured approach” as they try to understand the changes in the digital asset space as well as the use of distributed ledger technology and interest among clients.

Speaking at the hearing, Fraser said, “Before we engage with cryptocurrencies, we see it as our responsibility to ensure we have clear governance and controls in place.”

As it sees a rapid increase in the public interest in bitcoin, Citigroup is reported to have plans of launching its own crypto services.

Wells Fargo acts as an attentive audience

Wells Fargo executive Charles Scharf disclosed his institution is close to announcing a blockchain technology-based pilot project to facilitate the completion of internal book transfers of cross-border payments within their global branch network.

But with regards to cryptocurrencies, the Wells Fargo official said they are closely monitoring and actively following developments around the asset class that turned out to be alternative investment products. Scharf also noted that the status of the digital asset as a currency and mechanism of payment remains fluid.

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Source: https://bitcoinerx.com/blockchain/bank-of-america-wells-fargo-and-citigroup-share-their-views-on-cryptocurrencies/