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Financial institution of America’s chief working officer doesn’t see cryptocurrency as competitors. As an alternative, he views it as an asset class, noting that “folks prefer it for all kinds of various causes.”
Financial institution of America’s COO on Crypto: ‘I Don’t View It as Competitors at All’
Financial institution of America COO Tom Montag talked about cryptocurrency Thursday in an interview with Chainalysis CEO Michael Gronager at a convention hosted by the blockchain analytics agency in New York.
Montag can be president of Financial institution of America’s International Banking and Markets and a member of the corporate’s government administration workforce. He’s answerable for the entire companies that serve corporations and institutional traders.
He mentioned cryptocurrency reminded him of derivatives of their early days. He additionally admitted that he doesn’t perceive stablecoins. “I don’t perceive that in addition to everybody within the room … Is there actually a greenback behind stablecoin?”
The Financial institution of America COO was additionally requested whether or not banks are competing with crypto. He replied:
I don’t view it as competitors in any respect. I view it as simply one other asset class … and other people prefer it for all kinds of various causes.
The Financial institution of America government is just not the one one seeing crypto as an asset class. Rival funding financial institution Goldman Sachs mentioned in Might that bitcoin is an investable asset. JPMorgan mentioned in July that a variety of its purchasers see crypto as an asset class that they wish to put money into.
Commenting on whether or not bitcoin is a retailer of worth, Montag shared: “I got here round to how this might have worth as a world retailer of worth. It’s onerous to understand the significance of that as an American if you’re used to having a steady forex.”
As for the Federal Reserve launching its personal central financial institution digital forex (CBDC), he opined, “It will likely be inevitable, however it is going to be high-quality.” Federal Reserve Chairman Jerome Powell mentioned in September, “We’re working proactively to judge whether or not to situation a CBDC and, if that’s the case, in what kind.”
Final month, Financial institution of America debuted its crypto analysis, noting that digital property are “too giant to disregard.” The financial institution’s devoted crypto analysis workforce was established in July.
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