Bank of America (BoA) informed US regulators it may be “unable” to compete with the public’s use of cryptocurrency.
Filed on February 22, BoA wrote in their annual report to the Securities and Exchange Commission (SEC) that it may take “substantial expenditure” to stay competitive in the crypto era.
“Our inability to adapt our products and services to evolving industry standards and consumer preferences could harm our business,” BoA states in the filing.
BoA has recently received a patent for a proposed innovative cryptocurrency exchange system. They are concerned that cryptocurrencies will encroach on traditional banking products and services.
“…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[.]”
“Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies,” the bank said. Such increased competition may “negatively affect our earnings” or affect “the willingness of our clients to do business with us.”