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Cryptocurrencies represent a risk for Bank of America

Bank of America has called the cryptocurrency as a significant risk to its business.

25.Feb.18 10:14 AM
By Daria Zaytseva


Cryptocurrencies represent a risk for Bank of America

This technology may hinder the ability of the U.S. bank to comply with anti-money laundering rules, pose a competitive threat and force the company to spend more money to keep up with the times, the bank said in its annual filing with the Securities and Exchange Commission.

"Cryptocurrency" is mentioned three times in the annual report, all in the section on risk factors.

The first recommendation is to discuss the issue of combating money laundering, know-your-customer, sanctions and foreign corruption laws in the United States.

But, perhaps more noticeable is the recognition that the cryptocurrency is a competitive risk for the bank.

In a section about new competitors in the financial services industry, Bank of America expressed caution as to how customer preferences could lead to the use of products such as cryptocurrencies-for which, as it stands, the bank offers no support.

Indeed, the reference to the cryptocurrency as an external risk is one step ahead, and Bank of America says that growing acceptance would lead to the fact that it will have to allocate more resources - that is, to spend money - to remain competitive.

The bank said that the widespread introduction of new technologies, including Internet services, cryptocurrencies and payment systems, could require significant costs to modify or adapt their existing products and services.

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