Tom Montag, the CEO of Bank of America, talked about cryptocurrency at a conference that was hosted by Chainalysis. Tom said crypto can add value to banks’ $3 trillion asset management.
Tom Montag believes that crypto will help banks be more efficient and compliant.
Bank of America released a report, “Digital Assets Primer: Only the first inning,” pointing out that there are many potential benefits for blockchain-based technologies and digital assets.
When asked about loans against crypto assets, Montag said that the bank is hesitant to lend against crypto but could do so in the future if the crypto market shows stability.
Montag doesn’t think crypto is competing with banks, rather another asset class that people use for a variety of reasons.
Montag said many people might not want to use the currencies cryptocurrencies offer because they are volatile and hard to exchange.
Bank of America currently facilitates bitcoin futures transactions, is researching crypto and is thinking about how to offer new services to clients.
Banks like Goldman Sachs and JPMorgan are also seeing crypto as an asset class.
Tom did not understand stablecoins and said that banks are competing with cryptocurrency.
Asked if bitcoin was a store of value, Bank of America’s COO said he understood the importance of bitcoin as a store of value, but the Federal Reserve should launch its own central bank digital currency.