Bank of America Considers Bitcoin and Crypto Transactions to be Equivalent to Cash
Sarah Tran Jul 02, 2020 06:08
Bank of America is considering Bitcoin, Ethereum, and other altcoins to be cash equivalent, and will treat crypto-related transactions as cash advances. Adjustments to the fees in that category of transactions will also be made.
Bank of America is considering Bitcoin, Ethereum, and other altcoins to be cash equivalent, and will treat crypto-related transactions as cash advances.
An image posted on social network Reddit showed a possible change in credit card terms and conditions of Bank of America regarding cryptocurrencies such as Bitcoin (BTC).
Bitcoin, Ethereum, Litecoin, and other cryptocurrencies were mentioned to be treated as “cash advance,” according to the image of the letter that was posted briefly before it was taken down on Twitter.
Source: Reddit user
Some members of the crypto community speculated that it might be due to the fact that Bank of America could increase the fees related to the types of transactions referred to in the letter. Cash advances transactions have one of the highest fee rates, around 5 percent.
JPMorgan banks crypto firms
However, the Bank of America is not the first to start to embrace cryptocurrencies, as JPMorgan Chase, the largest bank in the United States, has accepted crypto exchanges Gemini and Coinbase as banking clients.
This is a sign that Bitcoin and other cryptocurrencies are being embraced in the American financial landscape and Wall Street.
The bank gave Coinbase and Gemini accounts the green light in April, and transactions are just kick-starting. Reportedly, JPMorgan Chase is offering cash-management services to the exchanges, as well as dealing with dollar-based transactions for their US-based clients.
The bank will also leverage on an electronic funds-transfer system dubbed the Automated Clearing House network to process withdrawals, deposits, and wire transfers. This development will ease transfer handling because most of Gemini and Coinbase customers link their traditional bank accounts to those provided by the exchanges. Nevertheless, the bank will not carry-out any cryptocurrency-based transactions.
Crypto adoption: Result of COVID-19 as a catalyst?
Billionaire hedge fund manager Paul Tudor Jones was reportedly looking to buy Bitcoin to hedge against inflation as central banks across the world are printing money to relieve economies affected by the coronavirus pandemic.
Jones is one of Wall Street’s most seasoned and successful hedge fund managers, CEO and founder of Tudor Investment Corp, a hedge fund that managed $8.4 billion assets under management as of March 30, based on data from the Securities and Exchange Commission.
Jones compared Bitcoin to gold by saying that the digital currency reminds him of the role that gold played in the 1970s. Jones was well known for his correct prediction of the 1987 market crash and shorted Japanese equities several years later before Japan’s economy crashed.
Image source: Shutterstock
