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Bank of America, Citigroup, Wells Fargo Unveil Their Cryptocurrency Policies – News Bitcoin News

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Bank of America, Citigroup, Wells Fargo Unveil Their Cryptocurrency Policies

Bank of America, Citigroup, and Wells Fargo have shared their policies regarding cryptocurrency before the U.S. Senate banking committee. The three banks are in different stages of offering crypto services to their clients. They also lag behind some of their peers, such as Morgan Stanley and Goldman Sachs, in offering access to investments with exposure to bitcoin or other cryptocurrencies.

Bank of America Evaluating Crypto Opportunities

The CEOs of Bank of America, Citigroup, and Wells Fargo gave their testimonies on cryptocurrency before the Senate banking committee last week. The committee, headed by Senator Sherrod Brown, summoned the investment bankers for its annual oversight hearing on Wall Street firms.

Bank of America CEO Brian Moynihan said that BofA was keeping distance from bitcoin and other cryptocurrencies as the bank continued “to evaluate the opportunities, risks and client demand for products and services related to cryptocurrency.” Noting that his bank holds more than 60 blockchain-related patents, he emphasized, “We still have not found a use case at scale.” The Bank of America executive confirmed:

Currently, we do not lend against cryptocurrencies and do not bank companies whose primary business is cryptocurrency or the facilitation of cryptocurrency trading and investment.

Bank of America’s analyst said in January that bitcoin was the “mother of all bubbles.” Nonetheless, the bank’s most recent fund manager survey saw “long bitcoin” as the most crowded trade. In March, the bank says the only good reason for holding bitcoin was “sheer price appreciation.”

Senator Brown is skeptical of cryptocurrencies. He recently sent a letter to the new Acting Comptroller of the Currency, Michael Hsu, urging him to review the cryptocurrency regulation under the purview of the Office of the Comptroller of the Currency (OCC).

Citigroup Taking Measured Approach to Crypto

Citigroup CEO Jane Fraser talked about her company taking a “measured approach” to cryptocurrency as the bank sought “to understand changes in the digital asset space and the use of distributed ledger technology, including demand and interest by our clients, regulatory developments and technology advancements.” The Citi executive noted:

Before we engage with cryptocurrencies, we see it as our responsibility to ensure we have clear governance and controls in place.

Citigroup is reportedly planning to launch crypto services as the firm sees a “very rapid” accumulation of interest in bitcoin. In March, Citigroup says bitcoin was at a tipping point and could become the preferred currency for international trade.

Wells Fargo Closely Watching Crypto Space

Wells Fargo CEO Charles Scharf said that his company was close to announcing a pilot project using blockchain technology “to complete internal book transfers of cross-border payments within our global branch network.” However, in terms of cryptocurrency, he said:

We continue to closely and actively follow developments around cryptocurrencies, which have emerged as alternative investments products, though their status as a currency and mechanism of payment remains fluid.

Darrell Cronk, the president of Wells Fargo Investment Institute, said last week that his firm is in the final stages of adding an actively managed cryptocurrency investment strategy to its platform. “We think the cryptocurrency space has just kind of hit an evolution and maturation of its development that allows it now to be a viable investable asset,” the executive opined.

When do you think these three banks will adopt cryptocurrency? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bridgewater Associates founder Ray Dalio has revealed that he owns bitcoin despite concerns he has long voiced about governments interfering and even outlawing cryptocurrencies. The boss of the world’s largest hedge fund said “bitcoin’s greatest risk is its success.” Ray … read more.

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New Bank of America Report Says Digital Currencies ‘Could Boost Economic Growth’ in Developing Countries – Fintech Bitcoin News

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New Bank of America Report Says Digital Currencies ‘Could Boost Economic Growth’ in Developing Countries

A new Bank of America (BOA) research study has found that both central bank digital currencies (CBDCs) and private digital currencies hold “a lot of potential” for increasing financial inclusion in developing countries. In the report, the bank also argues that such “digital currencies could reduce transaction costs and allow more economic activities in emerging market economies.”

Digital Currencies and Financial Inclusion

Still, the study findings show that while digital currencies are likely to “boost economic growth” in developing countries, their adoption will carry some risk. In addition, the study also finds that the rise of digital currencies “could lead to inflation and dollarization.”

Meanwhile, a separate report quotes David Hauner, the BOA’s head of emerging market cross-asset strategy and economics for EMEA, explaining why digital currencies could be pivotal in emerging market countries where more than 50% of adults lack a bank account.

“Digital currencies have the potential to address many practical constraints on financial services in poor countries,” said Hauner.

The report also lists the reduction of cross-border payment costs as well as the reduction of corruption and other illegal activities as some of the constraints that can be addressed by digital currencies.

Risks to Physical Currency

The BOA research study found that the rise of digital currencies could potentially “undermine a country’s physical currency,” however. Expanding on these findings, Hauner stated:

Easier access to alternative digital currencies is also likely to increase the volatility of domestic money supply and the exchange rate. Easier access to alternatives also raises the risks of rapid shifts of liquidity out of (or into) the currency and the banks which can magnify macro volatility in already less stable countries. Higher macro volatility would then reduce the effectiveness of policies and undermine the long-term rate of growth.

Despite these risks, Hauner suggests that more central banks are “likely to issue a general purpose CBDC in the next three years.” As previously reported by Bitcoin.com News, several countries — including a few in Africa — are currently at different stages of developing or piloting their digital currencies. Several more countries are likely to join the race as more studies show that digital currency benefits outweigh the risks.

What are your thoughts on the latest BOA research report on digital currencies? You can share your views in the comments section below.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Feature image: Roman Tiraspolsky, Shutterstock: https://www.shutterstock.com/g/tiraspr

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Why a HELOC might be right for you | Core Bank Personal

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Why a HELOC might be right for you | Core Bank Personal

A home equity line of credit (HELOC) is a good way to utilize the equity you have in your home to make a large purchase that otherwise is difficult to save up for. A credit limit will be established based on your home’s current valuation.  With a HELOC you not only get great flexibility by being able to access your money whenever you need it, but you also only pay interest on how much you actually use.

Let’s run through a few scenarios where taking out a HELOC would make sense.

Home renovations

One of the most popular reasons homeowners take out a HELOC is to fund renovation projects. Renovations can be a great use of money since they not only make your house more enjoyable to live in, they also generally increase your home’s value.

Reducing debt

Tired of paying a high-interest rate on your debt? You’re not alone. Using a HELOC to consolidate other forms of debt is a popular choice among homeowners. Credit card debt, for example, has a much higher interest rate than a HELOC would. The key to using this method of debt reduction is to plan ahead and make sure you know how you’ll pay off the loan.

Emergency funds

We’ve said it once, and we’ll say it again – having an emergency fund is always a good idea. Your home’s equity can be that emergency fund for you. If you find yourself faced with a medical emergency, job loss, or any other unexpected emergency, know that your equity is there to help.

Higher education

Looking to further your education? A HELOC might be a good alternative to student loans since they tend to offer a lower interest rate. Another benefit to a HELOC is that you may have more money available to you.

Federal student loans have borrowing limits which can make it hard to pay for an education if you still have a balance due even after utilizing other forms of aid, such as financial ad and scholarships.

Travel plans

Traveling is always fun, but paying for it is another story. While you can fund some trips with your everyday budget, some trips require a little more money. Using your HELOC can be a lifesaver when it comes to making your dream vacation a reality. No need to pull out the credit card or overextend your budget.

Equity is one of the many benefits of homeownership and can play a big role in helping you achieve financial wellness.  Learn how to make the most of your home today

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De-Banking! Former GOP Candidate Witzke Says Wells Fargo Shut Down Her Account: Report

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De-Banking! Former GOP Candidate Witzke Says Wells Fargo Shut Down Her Account: Report

First liberal corporations attacked conservative speech, but now they are destabilizing the finances of those they disagree with, as former Senate candidate Lauren Witzke has reportedly discovered.

American bank Wells Fargo has reportedly shut down the bank account of Lauren Witzke, a 2020 Delaware Senate GOP candidate and outspoken activist. An account purporting to represent Witzke claimed via Telegram that her bank account had been shut down, leaving her penniless in Florida: “Wells Fargo has shut down my bank account, taking all of my money and leaving me with a zero balance.” The Witzke account torched Wells Fargo for leaving her in the lurch and causing her to rely on the charity of her friends:

“When I called Wells Fargo told me that it was a ‘business decision’ and that they have the right to close my account at any time. Had I not been surrounded by friends in Florida, I would be completely stranded. Use this as a warning and get your money out of Wells Fargo if you are a conservative. This is so evil.”

Wells Fargo responded to inquiry from MRC Free Speech America by denying any political motivations:

“Wells Fargo does not consider political views or affiliations in making account decisions.  An account may be closed for a number of reasons based on individual facts and circumstances. While we cannot discuss customer accounts because they involve confidential customer information, we can report that we have reviewed this situation, gave ample notice of our decision and it was handled appropriately.”

Conservative firebrand Michelle Malkin wrote in a commentary on CNSNews that Witzke’s “entire life savings of roughly $15,500 had been transferred to ‘loss prevention.’” Malkin further asserted that “[Witske] would be barred from retrieving her funds at any branch office and that they would ‘mail a check.’”

Malkin reportedly heard from Witzke directly, the former candidate stating, “The current weaponization of corporations and banks against conservatives and Christians is terrifying.” Witzke reportedly recounted how sudden her ousting was from Wells Fargo:

“I have banked with Wells Fargo for years, using it as savings when I was working in ministry. Only when I was given a platform to share my Christian views on the national stage did Wells Fargo decide to shut down my account. The Evil Oligarchs at Wells Fargo left me, a young woman, with a balance of zero dollars, stranded, and a thousand miles away from my home with no explanation…Christians and Conservatives, get your money out of Wells Fargo, NOW!”

Conservatives are under attack. Contact your local representative and demand that Big Tech be held to account to mirror the First Amendment while providing transparency, clarity on “hate speech” and equal footing for conservatives. If you have been censored, contact us at the Media Research Center contact form and help us hold Big Tech accountable.

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