Bank Of America: Our ‘Inability To Adapt’ Could See A Failure To Compete With Crypto

Bank Of America:
Our ‘Inability To Adapt’ Could See A Failure To Compete With Crypto

Bank of America (BoA) has admitted to US regulators

it may be “unable” to compete with the growing use of cryptocurrency. In its annual report to the Securities and Exchange Commission (SEC) this week, filed Feb. 22, the major US bank for the first time highlights cryptocurrency as an area that may cause it “substantial expenditure” as it tries to remain competitive. “Our inability to adapt our products and services to evolving industry standards and consumer preferences could harm our business,” BoA states in the filing.

As banks worldwide eye the cryptocurrency phenomenon, direct interaction remains low. The lack of uptake formed a central reason why the European Central Bank confirmed it had opted for a hands-off approach to legislating the area earlier this month. While BoA has sought to innovate in the sphere, receiving a patent for its proposed cryptocurrency exchange system in December 2017, it has come in for criticism more recently after blocking its clients from credit card purchases of cryptocurrency.

As the report to the SEC continues, the institution’s keen awareness of the threat posed to its core business offering by competitors becomes clear. “…The competitive landscape may be impacted by the growth of non-depository institutions that offer products that were traditionally banking products as well as new innovative products,” BoA forecasts.

The report continues:

“This can reduce our net interest margin and revenues from our fee-based products and services. In addition, the widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services[.]”

The bank also pointed to staff retention failures and “increasing competition” in the financial services industry as being detrimental to its prospects.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

Coinbase’s GDAX Exchange Introduces Full SegWit Support

Coinbase’s professional trading platform Global Digital Asset Exchange GDAX

announced it has implemented Segregated Witness (SegWit) support for Bitcoin transactions in a blog post published Friday, Feb. 23. The platform characterizes SegWit technology as “a critical step forward in the development of Bitcoin” and promises support for SegWit transactions will be made available to 100% of their customers “over the coming days”. Coinbase announced Feb. 20 that SegWit testing on the platform was complete and that they’d begun a “phased launch”, of which Friday’s GDAX announcement is evidently a part, with the target of providing 100% support for all customers by this coming week.

SegWit technology is designed to reduce transactions times and fees on the Bitcoin network.  Many popular Bitcoin exchanges and services have been plagued network congestion from inefficient use of block space, a problem SegWit seeks to solve, resulting in widespread frustration among customers. The past week has seen several major SegWit adoption milestones. The latest version of Bitcoin Core, which was released for public editing Feb. 15, introduced full SegWit support for the first time. Just a few days later, on Feb. 20, the same day Coinbase said it had finished SegWit testing, major crypto exchange platform Bitfinex also announced full SegWit support for all customers.

This week was also marked by record low transaction fees on the Bitcoin network, down significantly from all-time highs in December, 2017 and January, 2018. When GDAX announced that Bitcoin Cash (BCH) would be available to trade on their platform in mid January 2018, the news fell flat for many traders, who would have rather seen the implementation of SegWit on the platform prioritized. Moving forward, GDAX also noted in their blog post that they’re committed to implementing additional scaling solutions for the Bitcoin network, including so-called ‘Layer 2’ solution, the Lightning Network.

Chuck Reynolds

Marketing Dept
Contributor

Please click either Link to learn more about Bitcoin.
Interested or have Questions, Call Me, 559-474-4614

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