Bank of America CTO clarifies stance on cryptocurrencies, calls bitcoin “troubling”

Bank of America CTO clarifies stance on cryptocurrencies, calls bitcoin “troubling”

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May 12, 2018 by Henrik Bliss
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  Cathy Bessant, chief technical officer of Bank of America (BoA), has reiterated the  bank’s stance on Bitcoin saying that cryptocurrencies are designed to be non-transparent. In an interview with CNBC’s Squawk Box, Bessant said it’s important to differentiate the two major uses of cryptocurrencies. As a payment system, she thinks cryptocurrencies are troubling because
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Cathy Bessant, chief technical officer of Bank of America (BoA), has reiterated the  bank’s stance on Bitcoin saying that cryptocurrencies are designed to be non-transparent.

In an interview with CNBC’s Squawk Box, Bessant said it’s important to differentiate the two major uses of cryptocurrencies. As a payment system, she thinks cryptocurrencies are troubling because the technology is “designed to be not transparent.”

“I think it’s troubling because the foundation of the banking system is on the transparency between the sender and the receiver, and cryptocurrency is designed to be nothing of the sort, in fact it’s designed to be not transparent,” Bessant said.

She added that the design of the technology makes it more difficult to police business transactions in cyberspace, and hinders banks’ attempts to catch “bad guys.”

“The way we sort of quote-unquote catch bad guys is by being transparent in the financial moment of money,” she said. “Cryptos is the antithesis of that.”

In February, BoA placed a ban on cryptocurrency transactions via credit cards, citing anti-money laundering regulations, as well as the potential for criminals to convert stolen credit cards into cryptocurrency stashes.

Bessant said their customers are free to choose whether to invest in bitcoin if they so wish. However, they wouldn’t be able to purchase cryptos with the bank’s card.

One thing they can’t do, though, is use a Bank of America credit card to make crypto purchases.

“Just like we don’t allow stocks to be purchased on our credit cards, we’re not going to allow cryptos or other digital currencies to be purchased on our credit cards,” Bessant said.

 


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