The chief operating officer of Bank of America does not see cryptocurrencies as a threat. Rather than that, he considers it as an asset class, adding that “people like it for a variety of reasons.”
Bank of America Chief Operating Officer Tom Montag discussed bitcoin with Chainalysis CEO Michael Gronager at a conference organized by the blockchain analytics business in New York on Thursday.
Montag is also the president of Bank of America’s Global Banking and Markets division and a member of the senior management team. He is in charge of all enterprises that cater to businesses and institutional investors.
He compared cryptocurrencies to derivatives in their infancy. Additionally, he confessed that he is unfamiliar with stable coins. “I, like everyone else in the room, do not comprehend that… Is stable coin really backed by a dollar?”
Additionally, the Bank of America COO was questioned about banks’ competition with cryptocurrency. He responded: I do not consider it to be competitive at all. I consider it as a distinct asset class… and individuals like it for a variety of reasons.
Not just the Bank of America CEO sees cryptocurrency as an asset class. Goldman Sachs, a rival financial firm, said in May that bitcoin is an investable asset. JPMorgan said in July that many of its customers saw cryptocurrency as an asset class in which to invest.
Montag said, in response to the question of whether bitcoin is a store of value, “I got around to the idea that this may have value as a worldwide store of wealth.” It’s difficult to comprehend the significance of it as an American used to a steady currency.”
Concerning the Federal Reserve’s development of its own central bank digital currency (CBDC), he said, “It is inevitable, but it will be good.” “We are proactively evaluating whether to issue a CBDC and, if so, in what form,” Federal Reserve Chairman Jerome Powell said in September.
Bank of America unveiled its cryptocurrency study last month, warning that digital assets are “too huge to ignore.” In July, the bank formed a dedicated crypto research team.
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