Monday, February 26, 2018

Bank of America worries for its future because of cryptocurrencies :


Bank of America is one of the largest financial institutions in the world. However, the annual report has just appeared, and we learn that cryptocurrency is indeed a threat to the institution's economic model.

A lively worry
The report was filed with the SEC by the Bank of America for the year 2017. But it is very quickly understood by browsing the document that the American institution is worried. Indeed, digital currencies seem to represent a significant threat to its future. It must be said that in recent months, the craze for virtual currencies is so important that it upsets the economic model established for decades.

And of course, not only is it a major upheaval worldwide, but many institutions and governments are worried about the regulation and future of fiat currencies.

A danger for the future of the institution
For example, we can read in this report: "The intensification of competition could have a negative impact on our profits by exerting downward pressure on prices or credit standards for our products and services, which would require additional investments to improve the quality and delivery of our technology or / and could reduce our market share, or affect the willingness of customers to do business with us. "

In addition, Bank of America recalls that these investments are dangerous. It warns investors who are free to make their choices, but who may regret investing their savings in an asset too volatile.

However, the rush to cryptocurrencies is more relevant than ever. Even if the market has been bearish for several weeks now, it must be considered that digital currencies are indeed part of the current economic system. Bank of America's concerns are well founded and it is time to rethink the institution's strategy. Which is particularly complicated.
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