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Bitcoin a "troubling" payment system: Executive of the Bank of America

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Bank of America remains warmongering to cryptocurrency as a means of payment, due to its disruption of regulation of the banking sector on transparency. Cryptocurrencies present authorities with more challenges to catch the "bad guys," a business executive said Thursday.

Cathy Bessant, Technical Director of Bank of America, set the tone for what she sees as two distinct uses of cryptocurrency: payments and investment. As a method of payment, cryptocurrency is dangerous because it does not comply with the payment control banking policies.

"The way we quote the bad guys is to be transparent in the finances [movement]," she said, referring to the CNBC Capital Exchange Breakfast Series in Washington, DC DC "Cryptos is the antithesis of this".

She added:

"As a payment system, I think it's troubling because the basis of the banking system is based on transparency between the sender and the recipient, and the cryptocurrency is designed to be nothing of the sort.In fact [it’s] designed not to be transparent. "

Casting cryptocurrency in a good guy vs nasty storytelling is a common theme for traditional banks and investment funds. Leaders are undervaluing the main pain points that cryptocurrencies are trying to solve in the financial sector (such as the slow settlement of payments and transaction fees), while sounding the alarm for criminal activity. As CCN reported, Berkshire Hathaway's VC, Charlie Munger, said that Bitcoin was almost as "bad as the baby brain trade".

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Like many large institutions, Bank of America has instituted a policy prohibiting customers from using their credit cards to buy bitcoins and others

Although Bessant does not consider legitimate use cases as crypto, customers can still invest in crypto-currencies such as bitcoin – but not with credit cards issued by Bank of America. cryptocurrencies vaguely as stocks.The policies of their customers therefore reflect this line of thinking.

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"Just as we do not allow the purchase of stocks on our credit cards, we will not allow the purchase of cryptos or other currencies on our cards credit, "said Mr. Bessant.

While some banks classify competing payments with credit cards as cash advances (with high fees), BofA does not allow them at all.

While the regulation of cryptocurrency is only in its infancy, BofA stands out as a financial giant with a firm stance on the debate. For BofA, it seems that the cryptocurrency space is full of modern hackers and Robin Hood. However, the bank brings every day improvements to security, according to Bessant.

"Awareness is higher, the sophistication of our defense and detection efforts is increasing every day.There are more players in the mix with a lot of expertise, and the threat environment is starting to show models that make prediction and even automatic prediction something we can do every day, so I think we're in a better place, "said Bessant.

Pictures of Shutterstock

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