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Bank of America is open to adopting crypto payments

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It seems some of the most powerful banks in the world are beginning to realize the benefits of adopting crypto payments. On Tuesday 21st January, Bank of America (BofA) CEO Brian Moynihan spoke about how the U.S. banking industry will have to embrace cryptocurrencies for payments if regulators allow it. The demand from customers and account holders will drive banks to accept transactions in digital currencies, just as they accept transactions managed by other payment processors, such as Visa, Mastercard, or Apple Pay and Google Pay. This is huge news for the crypto industry and crypto users, who have long anticipated mainstream financial institutions taking steps toward legitimizing and integrating digital currencies into everyday financial transactions.

So, what has Bank of America’s perception of crypto been until now? Why might they have changed their tune? And when might we expect crypto payments to become simply another mainstream payment option? We explore. 

The Bank of America and crypto

Historically, major financial institutions in the U.S., including Bank of America, have approached the subject of cryptocurrencies with caution. Concerns over regulatory uncertainty, the potential for illicit activities, and the volatile nature of cryptocurrencies have caused banks and institutions to hesitate and question the safety of these assets. In 2021, Bank of America CEO Brian Moynihan indicated that the bank was keeping its distance from the Bitcoin business, evaluating the opportunities and risks associated with cryptocurrency-related products and services.

But despite this previously cautious approach, the tides have begun to turn, and these two worlds that previously rarely acknowledged each other, are beginning to show signs of working together. Client demand for cryptocurrency integration is growing and the regulatory environment has also begun to shift in favor of crypto use. By 2024, institutions like Morgan Stanley had started offering access to Bitcoin funds for their wealthy clients, signaling a gradual integration of cryptocurrencies into traditional financial services, reflecting a broader industry acceptance of crypto. 

Why has the Bank of America changed its tune?

American banks, including JPMorgan Chase and Co., Bank of America, Goldman, have generally avoided offering their customers the option to transact through crypto payments. But gradually, the adoption of cryptocurrencies has grown among the general population, and demand for increased utility, i.e. real-world applications such as spending, has grown. The Bank of America in particular was sensitive to this shift in consumer demand, recognizing that digital assets have the potential to transform and enhance financial operations. In October 2021, the bank launched its digital asset research with the publication of a report titled Digital Assets Primer: Only the first inning, signaling a shift towards a more proactive engagement with the crypto space.

The Bank is no stranger to the blockchain and its functionality. They have hundreds of patents on the blockchain, the knowledge of which allows them to smoothly integrate the technology as needed to incorporate crypto payments. BofA has also likely been influenced by President Donald Trump’s foot-on-the-gas approach to crypto adoption and integration. While Bank of America CEO Brian Moynihan emphasised the importance of distinguishing between crypto as an investment asset and stable digital assets for transactions, he has also indicated that if regulatory bodies were to approve crypto payments, the bank would be well-positioned to accommodate this due to customer demand. 

The future of crypto payments

As a crypto payment gateway, the news that a major U.S. financial institution is considering adopting crypto payments (as long as the regulatory environment allows for it) is both a validation of the industry’s progress and a signal that mainstream adoption could accelerate faster than previously anticipated. ForumPay is advantageously positioned to support this disruptive decision once it is made, by providing the technology for seamless and secure payment solutions that also bridge the gap between digital assets and traditional financial systems. As institutions like Bank of America begin to recognize the value of crypto payments, the demand for reliable, scalable, and user-friendly payment gateways, such as ForumPay, will only grow.

For more on crypto trends, or to learn how to integrate crypto payments into your business’ workflow, visit www.forumpay.com, or get in touch with our sales team to discuss any questions you may have.

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ForumPay does not disclose financial advice. Anything shared is strictly to inform, entertain, or share thoughts and ideas. Please seek a registered financial advisor if you are looking for financial advice.

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