Customers reported about five instances of customer accounts being closed for interacting with cryptocurrencies at the Bank of America. The banker recommends opening an account at a comparatively smaller bank, thereby, transferring the funds, eventually breaking the link between the bank account and the cryptocurrency exchange.
Internal compliance policies of the Bank of American read thus: “Cryptocurrency exchanges or digital currency exchanges (DCE) are businesses that permit clients to trade in cryptocurrencies, virtual or digital currencies, for other assets.”
The policy further added: “Do not open accounts for cryptocurrency exchanges or businesses whose primary business is the trading of, or investment in, cryptocurrency, virtual currency, or digital currency whether as agent or principal.”
While not all significant banks gave clear cut answers regarding cryptocurrency transactions, Chase Bank revealed very clearly on their internal compliance policies, stating: “Opening a cryptocurrency account for businesses is prohibited.”
When questioned about the existing state of development of the cryptocurrency industry, Morehead concerning the Gartner Hyper Cycle related to innovative technologies stated:
“A small kernel of important things gets people to be crazed about [Bitcoin] and then [there’s a] trough of disillusionment. And we have already gone through two of those cycles in the six years that we’ve been investing in [cryptocurrencies].”
He further opined that Bitcoin and the blockchain technology are in the earlier stages of development and it will take at least a decade for Bitcoin to mature.
Dan Morehead pointed out: “If you ever go back and zoom your lens for more than a year, Bitcoin as a proxy for the industry is always going up.”
The market continues to be dominated by bearish sentiments.
Mnuchin stated, “I can assure you, I will personally not be loaded up on Bitcoin in 10 years, I would bet even in five to six years I won’t even be talking about Bitcoin as Treasury Secretary.”
Mnuchin opines that the future for the cryptocurrency is bleak and he further continues to bat for the USD. He also clarified that the dollar is the reserve currency, and in our interest, we want to maintain it.
With the coming of the cryptocurrency, several discussions have been sparked over whether tech companies are taking over the functions of banking institutions.
Bruno Le Maire, Finance Minister of France, stated: “We cannot accept private companies issuing their currencies without democratic control.”
The least likely scenario at this point is “Take Over.”
