Bank of America CEO Brian Moynihan stated on Tuesday that U.S. banks would be willing to utilize cryptocurrency for payments if permitted by regulators.
During an interview with CNBC, Moynihan, who heads one of America’s largest banks, mentioned that all banks now send money digitally and that Bank of America has been studying blockchain technology for many years. However, he pointed out that regulators have not provided clear guidance on how banks could utilize cryptocurrency.
Moynihan stated, “If the rules are established to allow actual business transactions, you will find that the banking system will strongly participate in the transactional aspects.”
Moynihan’s remarks coincide with the announcement of a new cryptocurrency task force by the Securities and Exchange Commission (SEC), Wall Street’s leading regulator. The purpose of this task force is to establish a sensible regulatory framework for the cryptocurrency industry.
Moynihan further explained, “If it’s a stablecoin-like digital token backed by the U.S. dollar, similar to a money market fund, and our customers actually want to use it, we believe there is value in that. It’s just another way money moves.”
A stablecoin refers to a type of digital token that is backed by another asset, typically the U.S. dollar, and does not experience the same price volatility as cryptocurrencies such as Bitcoin or Ethereum. In recent years, U.S. lawmakers have focused on regulating this aspect of the cryptocurrency market, with the Biden Administration seeking better control over the sphere.
Moynihan was responding to inquiries regarding President Donald Trump’s support for cryptocurrencies. During his campaign, Trump expressed his intention to assist the industry and even launched a Solana meme coin prior to his inauguration.
However, Moynihan declined to comment on the investment aspect of cryptocurrencies.
Other top executives from American banks have also been hesitant to endorse Bitcoin but have acknowledged the potential use cases of cryptocurrency.
Jamie Dimon, the CEO of JP Morgan, has consistently criticized Bitcoin, referring to it as useless and akin to a “pet rock.” However, he has acknowledged the usefulness of blockchain technology. Last month, the CEO of the world’s largest bank mentioned that Bitcoin was heavily used by “sex traffickers and money launderers,” but he could envision the adoption of a digital currency in the U.S.
Dimon stated in an interview with CBS News, “I’m not against crypto, but Bitcoin has no intrinsic value.”
Edited by Andrew Hayward.