Key Takeaways
- BOA constitutes crypto research team
- Research team to study different aspects of cryptocurrencies and recommend potential services
- BOA forced to explore cryptocurrencies as rivals pull away in the crypto race
According to a report from US news outlet Bloomberg, the Bank of America has launched a working group dedicated to researching cryptocurrencies. Leading the project is Alkesh Shah, the bank's head of data strategy and innovation.
The working group is expected to conduct extensive research on cryptocurrencies' economic, legal, and financial viability. They will also make recommendations to the bank on potential services for its institutional and retail customers.
Speaking on the development, BOA chief Candace Browning stated that the bank was well-positioned to become a major stakeholder in the crypto space. She alluded to the extensive industry analysis and existing blockchain expertise acquired in recent years.
It should be noted that the BOA has made significant developments within the blockchain industry. For example, the bank filed a patent application for a private blockchain in 2018 and hired several blockchain specialists in the process. In addition, BOA tested the Paxos blockchain infrastructure in 2020 to optimize financial settlements of transactions within its internal systems.
However, the bank lags behind rival institutions in the cryptocurrency race. In March, leading US bank, JPMorgan announced that it was preparing a service that would expose companies to cryptocurrencies, while Goldman Sachs launched a bitcoin service for its institutional clients.
The BOA risks being left behind with its slow response towards cryptocurrencies. Financial institutions are known for their ability to adapt to growing financial and economic changes. However, the announcement of the creation of a cryptocurrency task force suggests that things may be picking up steam at America's second-largest bank in terms of crypto-assets.
Finally, this development bodes well for the crypto ecosystem as the BOA is one of the biggest financial institutions in the world.
What are your thoughts on the Bank of America turning towards cryptocurrencies?
