Bank of America ‘blesses’ crypto assets and launches a resounding bet on the blockchain | Markets

“We believe that digital assets could completely form a new asset class.” This is how resounding Bank of America is about bitcoin and the entire universe that surrounds it, which has grown too large to be ignored, according to the US bank. The firm recognizes the regulatory risks that weigh on crypto assets but sees in blockchain technology and all its derivatives a promise of long-term profitability too attractive to be dismissed.

For now, digital assets are an obvious reality, according to Bank of America in a report published today. They have reached a market value that exceeds 2 trillion dollars and more than 220 million people around the world have traded a cryptocurrency or used an application based on blockchain technology. A figure that, as of June of this year, has grown exponentially from the 66 million users in May of last year.

More figures: the universe of crypto assets already exceeds the GDP of large economies such as Italy or Canada. And bitcón, the great reference in this universe, has already been placed among the ten largest assets in the world by market value, rubbing shoulders with giants such as Tesla or FaceBook. Venture capital has also sniffed out the opportunities of digital assets and the investments of these crypto-asset and blockchain linked funds reached $ 17 billion in the first half, according to Bank of America, well above the 5.5 billion last year.

Ultimately, “the sector of digital assets is too big to be ignored,” says the US entity. In his view, while bitcoin was designed as a currency, it is increasingly being viewed as “digital gold.” But the ecosystem of digital assets goes far beyond bitcoin and encompasses all digital currencies, also those that the main central banks in the world plan to launch, tokens and decentralized applications that are based on blockchain technology and that allow the use of financial products and services without any link with traditional financial institutions.

“Our vision is that there could be more opportunities than the skeptics suppose. In the near future, we could use blockchain technology to unlock the mobile phone, buy a share, a house, collect a dividend or even to pay for a pizza ”, assures Bank of America.

In its enthusiasm for crypto assets, Bank of America declares its commitment to the future of these digital assets with the argument that “we are only at the beginning of the biggest change in the applications of most of the industries that will take place in the next 30 years” and that “the applications created in this new software architecture would be growing faster than previous technologies.

Despite the clear business opportunity that Bank of America appreciates, regulators do not stop warning of the risks involved in investing in digital assets, which are highly volatile and in which small savers may lose their entire investment. In China, they have even declared all cryptocurrency operations illegal. Bank of America recognizes that regulatory risk is the one that weighs the most on these assets in the short term, although that regulation may ultimately lead to greater investment in the long term once the rules of the game are defined. The entity also relativizes the accusations that weigh on digital assets of being a means of money laundering.



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.