Why Banks Are Finally Talking Crypto In Filings?
Mar 21, 2018 Posted / 2702 Views
The Bank of America annual filing with the Securities and Exchange Commission clearly stated Cryptocurrency as one of the risk factors.Now there have been speculations and rumors that there had been chagrin because of the extent of cryptocurrency transactions.That is because of the fact that its usage has been increased more than ten folds, from a small person like me to colossal peers, all are investing in bitcoins and its seeds more seriously this year specifically than last year or two years back.
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This happened because of the advancement in the technology of the cryptocurrency and the blockchain. The public has also become more aware although it's not used as a daily token because of limited use. Due to this, the banks have become little insecure, features like anonymous transactions have made it very hard for the bank to trace the financial flow and prevent money laundering, moreover, this technology can replace the Banks one day.
Who can forgot the comments of JP Morgan, which clearly mentioned that this technology can replace any technology regarding payments processing because of its features like the absence of middleman,
Jp Morgan is not alone with this vision, Banks like WesBanco in West Virginia and Iberia Bank in Louisiana also shared same insecurities. Smaller Banks feared the most of this advancing technology because they can lose their loyal and possible customers on regular basis.
It is possibly stating that publicly traded companies including banks are still having the various dilemma in this situations and they still are figuring how to deal with cryptocurrency because cryptocurrency has taken the world by surprise.
Concluding with the Goldman Sach’s report on blockchain risk warning:
"The use of computing devices and phones is critical to the work done by our employees and the operation of our systems and businesses and those of our clients and our third-party service providers and vendors. It has been reported that there are some fundamental security flaws in computer chips found in many types of these computing devices and phones. Addressing this issue could be costly and affect the performance of these businesses and systems, and operational risks may be incurred in applying fixes and there may still be residual security risks."
But this is true for almost any business, from small scale to large scale thus will it be right to include crypto-related issues under contingencies. Nothing can be said as of now because the US has always been ahead of the curve so there is great possibility that they already had come up with a contingency plan.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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