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The CEOs of several major U.S. banks were cautious about dealing with cryptocurrencies in testimonies released before appearances before a Senate committee on Wednesday.
Notes from Brian Moynihan of the Bank of America, Jane Fraser of Citigroup and Charles Scharf of Wells Fargo US financial regulators make efforts to respond to explosive growth dizzying volatility – the crypto market, which currently has no main national supervisor.
Financial groups are at the same time under pressure from consumers and businesses who want a share of the action, and from regulators who are clearly concerned about the business environment that “may have greater investor protection,” in the words of Securities President Gary Gensler. and the Exchange Committee.
Moynihan noted the difficulties facing CFOs in his testimony, saying BofA continued to distance itself from the business of bitcoin and its brothers by “continuing to assess the opportunities, risks and customer demand for cryptocurrencies and services.”
“Currently, we do not provide cryptocurrency loans and we are not the main bank to facilitate the trading and investment of the cryptocurrency business or cryptocurrency,” he said.
Moynihan added that while his bank holds more than 60 patents on the blockchain – a cryptocurrency-based technology book – “we have yet to find a use case on the scale.”
Fraser said Citigroup was taking a “measured view” of “changes in the digital asset space and an understanding of the use of distributed book technology, including our customers’ demand and interest, regulatory developments and technological advances.”
“Before contacting cryptocurrencies,” he said, “we see it as our responsibility to ensure that we have clear governance and control.”
Scharf said he is coming to the announcement of a pilot project using Wells blockchain technology “to carry out internal book transfers of cross-border payments in our global branch network.”
But that was until he arrived. He said: “We are closely and actively following developments around cryptocurrencies, which have emerged as an alternative investment product, although their status as a currency and payment mechanism remains mild.”
Along with the three bankers, Jamie Dimon of JPMorgan Chase, David Solomon of Goldman Sachs and James Gorman of Morgan Stanley will meet before the Senate Banking Committee.
Led by Sherrod Brown, a progressive Democrat from Ohio, the committee called on bankers for annual oversight of Wall Street companies.
The jury was particularly interested in the response and diversity of large banks to the pandemic at their level and in their efforts to promote social and economic justice more widely.
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