Is the banking industry prepared for the disruption that cryptocurrency payments may cause, and if Bank of America is leading the charge, what lasting changes can we expect in how banks, businesses, and consumers interact?
Bank of America CEO calls for cryptocurrency payments
The worlds of banking and cryptocurrency often seem like two ships passing in the night – each acknowledging the other’s existence but rarely finding common ground.
However, Brian Moynihan, CEO of Bank of America, has thrown his weight behind the idea of integrating cryptocurrency payments into the US financial system – but only if regulators give the green light.
Speaking at the prestigious World Economic Forum in Davos, Switzerland, Moynihan addressed a question that has long lingered in the industry – what would it take for banks to embrace cryptocurrencies as a means of payment?
“If the rules come in and make it a real thing that you can actually deal with, you’re going to find that the banking system is going to struggle with the transaction side of it,” Moynihan said during a news conference. interview With CNBC.
“If you go out on the street here and buy lunch, for example, you can pay with Visa, Mastercard, debit card, Apple Pay, etc. In that sense, cryptocurrency will be just another form of payment,” Moynihan explained.
He also discussed the growing realization that cryptocurrencies – especially stablecoins backed by traditional assets such as the US dollar – can be seamlessly integrated into existing payment networks.
“If it’s a dollar-backed, stablecoin-type cryptocurrency… and our customers actually want to use it, then we think there’s value there,” Moynihan said, hinting that banks could look at these tokens as a safer entry point into the cryptocurrency payments space. encrypted.
However, Moynihan did not address the idea of cryptocurrencies like Bitcoin (BTC) as an investment or store of value, stating that it is “really a separate issue.”
Bank of America’s dual relationship with cryptocurrencies
Bank of America hasn’t always been bullish on cryptocurrencies. For years, the institution’s top executives have expressed strong concerns, often portraying cryptocurrencies as a challenge to the transparency and security on which the banking system relies.
Back in 2018, Cathy Besant, chief technology officer at Bank of America, said, Express A sharp criticism of the infrastructure of cryptocurrencies, stating that:
“As a payment system, I think it’s concerning because the foundation of the banking system is transparency between sender and recipient, and cryptocurrencies are designed to be nothing like that.”
She described cryptocurrencies as the “antithesis” of transparency, noting how their pseudonymized nature made it difficult for authorities to “catch the bad guys.”
However, over the years, Bank of America’s position has evolved radically. The bank has invested heavily in blockchain technology, recognizing its potential to boost efficiency, reduce costs and modernize financial systems.
“We have hundreds of patents on blockchain already,” CEO Brian Moynihan said recently in Davos.
In 2021, Bank of America started… workout With Paxos Settlement Service, a blockchain-powered platform designed to speed up stock settlements. With Paxos, Bank of America joins global giants like Nomura Holdings and Credit Suisse to address payment inefficiencies, reducing trade settlement times from 48 hours to near-instant processing.
The bank’s interest in cryptocurrencies themselves has also increased. In 2024, Bank of America’s Merrill Lynch added Bitcoin exchange-traded funds to its brokerage platforms for qualified wealth management clients.
The US Securities and Exchange Commission recently announced the creation of a cryptocurrency task force that aims to create a “reasonable regulatory path,” which could provide the necessary guidance for banks like Bank of America to integrate cryptocurrency payments into their operations.
How American institutions are entering the field of cryptocurrencies
For years, many of America’s major financial institutions have kept cryptocurrencies out of their reach, watching the volatile digital asset market unfold from the sidelines. Concerns about regulatory ambiguity, compliance risks, and the shadow of illicit activities have made many reluctant to participate.
However, starting in 2025, a growing number of giants in the financial sector are beginning to embrace cryptocurrencies in ways that could fundamentally reshape the market.
Take JPMorgan Chase, a bank whose CEO, Jamie Dimon, once referred to Bitcoin as a “scam currency” and a “pet rock.”
Today, the bank leverages not only blockchain technology, but also pioneering solutions such as Kinexys, a platform designed to tokenize assets in the real world and enable real-time foreign currency settlement.
JPMorgan’s stablecoin, JPM Coin, launched in 2019, has cemented its role in digital finance. JPM Coin facilitates high-value institutional transactions, processing nearly $1 billion daily as of late 2023.
BlackRock, another major player, has embraced cryptocurrencies differently. The world’s largest asset manager launched the Spot Bitcoin ETF in early 2024, and the fund has since become the largest of its kind, holding 563,000 BTC worth more than $59 billion as of January 22.
The emergence of exchange-traded products has enhanced the legitimacy of cryptocurrencies. In 2024, the launch of Bitcoin and Ethereum (ETH) ETFs has brought cryptocurrencies closer to mainstream investors, and altcoin-like products such as Solana (SOL) and Ripple (XRP) are gaining global momentum.
According to a recent statement from WisdomTree, an asset manager that closely monitors digital trends, institutions that fail to integrate cryptocurrencies into their offerings risk being left behind.
Under President Trump, pro-crypto policies have gained momentum, with expectations of executive orders aimed at accelerating their adoption.
Decipher the potential impact
If regulators give Bank of America and other financial institutions the green light to integrate cryptocurrency payments, it could change how the financial system works in the United States.
Bank of America, the nation’s second-largest bank, is worth $1.6 trillion Origins Under its management and $52 billion in new inflows in 2023, it has the scale and resources to lead this transformation.
CEO Moynihan’s statement that the bank is ready to “get aggressively into the transaction side” reflects years of preparation, backed by hundreds of blockchain patents and the adoption of infrastructure providers like the Paxos settlement service to speed up settlement times.
To understand the potential impact, it is important to consider the current size of cryptocurrencies, especially stablecoins.
According to Coinbase, in 2023, stablecoins processed $10.8 trillion in transactions, with $2.3 trillion coming from organic activities such as consumer payments and business remittances. Labeling An increase of 17% from 2022 and positioning stablecoins as a reliable competitor to traditional payment systems such as Visa and Mastercard.
If integrated into banking services, cryptocurrencies could enable consumers to use digital wallets linked to their bank accounts to pay for groceries, utilities or subscriptions, all without the fees or delays associated with credit cards or ACH transfers.
The impact will be more pronounced for companies, especially in cross-border transactions.
Today, international transfers are often slow and expensive, with payments taking days to clear. Cryptocurrencies could change this dynamic, allowing, for example, a small business owner in Texas to pay a supplier in Singapore within seconds, bypassing currency transfers and intermediary banks.
This shift is in line with trends in North American cryptocurrency activity. According to Chainana Analysis, between mid-2023 and mid-2024, on-chain value reached $1.3 trillion. registeredAbout 70% of these transactions are high-value transfers exceeding one million dollars.
If banks like Bank of America integrate cryptocurrencies, they can streamline these processes further, reducing liquidity and counterparty risk while keeping operating costs low for their largest clients.
But the impact is not limited to large companies and institutions. Cryptocurrency payments can help address financial exclusion. Federal Deposit Insurance Corporation (FDIC). Reports More than 19 million U.S. households remain unbanked, often due to high fees, lack of access, or distrust of traditional banks.
Cryptocurrency payments, which only require a smartphone and an internet connection, provide a viable alternative.
Although hurdles remain, such as regulatory concerns and infrastructure gaps, bringing traditional banking and digital currencies together provides an opportunity to completely reimagine how financial systems work for both people and businesses.
