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BoA Chief Says US Banks Ready to Adopt Crypto for Payments, Pending Regulatory Clarity
- Bank of America CEO Brian Moynihan has emphasised the bank’s preparedness for crypto integration through their extensive blockchain patents and existing digital payment infrastructure.
- While showing particular interest in dollar-backed stablecoins, Moynihan maintains that clear regulatory guidelines are necessary before banks can fully engage with cryptocurrency services.
- Despite previous crypto-related campaign promises, Trump’s initial executive orders focused on traditional policy areas such as immigration and international agreements rather than addressing cryptocurrency regulation.
According to Brian T. Moynihan, the boss of Bank of America, US banks are ready to use crypto, as long as regulators are. The chief of the second-largest bank in the United States told CNBC on Tuesday that there’s willingness to use crypto for payments as banks already send money digitally.
Related: Acting Chairs of US SEC and CFTC Named: Here’s What They Mean for Crypto
Moynihan said his bank is well aware of blockchain after “studying it for years”.
We have hundreds of patents on blockchain already, we know how to enter the field.
Brian T. Moynihan, CEO of Bank of America But the CEO also added that unclear signals from regulators have made things complicated.
If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it.
Brian T. Moynihan, CEO of Bank of America While Moynihan wasn’t keen on discussing crypto as an investment, he seems keen on stablecoins, especially dollar-backed ones:
If it’s a stablecoin-type of dollar-backed [crypto], like the money market fund, and our consumers actually want to use it […] we think there’s value there.
Brian T. Moynihan, CEO of Bank of America Change Won’t Happen Overnight
Meanwhile, Donald Trump has just completed his first set of executive orders, though crypto was not mentioned.
Trump focused on issues he had been discussing during his campaign, like immigration and withdrawal from the World Health Organisation and the Paris Climate Agreement.
James Toledano, COO of Unity Wallet said that “crypto investors were expecting Trump to mention bitcoin or crypto in his [inaugural] speech”, but added that previous presidents have stayed away from talking about “stocks or other tradable assets” during such speeches.
Toledano said that crypto price surges tied to political promises, like those from Trump, are more speculative than based on real policy changes.
Related: 3 Post-Inauguration Lawsuits Against Musk’s Efficiency Agency Tumble Dogecoin Price
He believes it’s better to focus on long-term fundamentals, as meaningful regulatory shifts in crypto require extensive coordination with other US authorities..
The DeFI industry has over-hyped January 20 and Trump’s own meme coin $TRUMP has slumped 20% over the past 24h. Speculation around a U.S. Bitcoin Strategic Reserve, rumors of a Trump executive order on crypto and hopes for regulatory clarity on day one of his presidency have fueled exaggerated expectations but change doesn’t happen overnight.
James Toledano, COO of Unity Wallet Trump’s pledges included a national bitcoin reserve, freeing Ross Ulbricht, and addressing banking restrictions impacting crypto, along with other regulatory changes.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
