CEO of Bank of America: “We Want a Cashless Society”

[Baofeng]

Bank of America (BAC) CEO Brian Moynihan embraced the digital money movement on Wednesday, saying his firm has “more to gain than anybody” from the booming trend of non-cash transactions.

“We want a cashless society,” Moynihan, who heads up the second largest U.S. bank, told attendees at Fortune’s Brainstorm Finance conference.

He pointed out that more than half of all money transactions are already processed electronically, with the rise of cryptocurrencies, and payment systems like PayPal (PYPL), Zelle, and digital wallets.

The banking sector has “already digitized,” Moynihan said on Wednesday. “The business has moved digitally and it will continue to move that way. It’s just figuring out how to add the value.”

https://finance.yahoo.com/news/bank-of-america-brian-moynihan-cashless-society-210717673.html

Is this a hint that BAC is looking at crypto as not a competition but rather both ecosystems can exist together? Your thoughts.

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[1Referee]

Is this a hint that BAC is looking at crypto as not a competition but rather both ecosystems can exist together? Your thoughts.

I think his hint is that he doesn't mind the direction of the world as in digital money that will be taking over.

The main thing here is that banks won't go away despite a lot of people here thinking they will. Banks can easily adapt to the changed money climate, and they are faster than we are in doing so. In the end, it doesn't really matter what form of money we're using, they just want to make sure they can be part of it and charge fees in the process.

I see a time where banks will be the main entry points to crypto for people. It's convenient, you don't have to wire money to foreign bank, and KYC/AML isn't necessary because your bank has all your information already. I'm sure they'll throw in insurance as well as extra service.

[jvdp]

I believe this CEO wants to to use their online options to make the the banking transactions and international transactions.
Even we have heard these kind of words in my country also but perform anything about cryptocurrency and all.just want to make the transactions via online third party merchants.
Banks will never support cryptocurrencies in this era. Maybe after some years we may expect it.

[rdbase]

You always have to take what the banks say with a grain of salt.
They are bankers after all and will want the digital currency to belong to them and under their rules. So whatever it comes down to they wont want it to be a decentralized cashless society like what the major of cryptocurrenies are striving towards in the first place.

[bitcoindusts]

Banks cannot eliminate the existence of cryptocurrencies and the more they are being regulated doesn’t show a single sign that crypto will go to extinction, what is happening is the opposite so if something they hate cannot be terminated then they must think of ways to go with it and benefit from it.

[mk4]

Is this a hint that BAC is looking at crypto as not a competition but rather both ecosystems can exist together?

I'm pretty sure that when Moynihan said "We want a cashless society", I don't think he was automatically referring to cryptocurrencies. Like what it says on the article, cashless and digital also includes non-cryptocurrency platforms like PayPal and such. There's a good chance that he's referring to countries like Sweden whereas transactions are pretty much mostly through credit/debit cards and non-crypto mobile payment platforms.

[CryptoBry]

Is this a hint that BAC is looking at crypto as not a competition but rather both ecosystems can exist together? Your thoughts.

The banking sector is always looking for ways where they can cut cost, enhance profitability and just ride any innovation that can ensure that banks survive into the future. I am predicting that banks will be adopting to what they feel to be legitimate and viable technologies around. 

Now, does it mean they gonna adopt the cryptocurrency movement? Probably yes, but not quite aligned with the way we think they will. What I mean is that banks can also introduce their own cryptocurrency if they want and I think there is now a consortium of banks experimenting with this...all of these developments are of course pointing to the cashless society which is now partly happening.

[Jet Cash]

Ironically I'm finding it harder to pay by credit card at the moment. Several of the systems seem to fail regularly, and many smaller shops and cafes are starting to become cash only. They state that Visa charges are too high.

[blueteam09]

He did not mention using the Blockchain platform to create its currency, so this statement is not a positive statement to Crypto. If they develop their blockchain platform, it may be Stablecoin so don't be too excited about this event. That will not affect Crypto positively.

[dothebeats]

A banker with actually good intentions for crypto? This seems to be new in my books, although I must say that he is correct. Most things are already digitized, and if cash were to follow next then I guess we're on the right direction already, starting from Paypal up to cryptocurrencies. Good thing one with enough reason and is sane enough to know that there are always two sides of a coin--even if belonging to the group bitcoin despises most--speaks the truth and not just all bias just to support their organization.

Ironically I'm finding it harder to pay by credit card at the moment. Several of the systems seem to fail regularly, and many smaller shops and cafes are starting to become cash only. They state that Visa charges are too high.

Yes, it happens every so often, and that, I think, is where bitcoin and cryptocurrencies might come in handy if you don't have those cash with you at all times.

[jackg]

Ironically I'm finding it harder to pay by credit card at the moment. Several of the systems seem to fail regularly, and many smaller shops and cafes are starting to become cash only. They state that Visa charges are too high.

Yes, visas payment services are constantly failing. Its what happens when you have little competition and charge £4.90 a card...
If you pull money out at a cash machine then it's normally the best way to go as LINK is much less likely to be down... I keep facing issues with my contactless card and phone not being recognised by the machine...


Banks have an enemy in cash because if you have a number on your account you're more likely to spend, more likely to not use cash so the banks get bigger due to a lack of Deflation from burnt money and an incentive to not have it backed by anything...

[serjent05]

I'm pretty sure that when Moynihan said "We want a cashless society", I don't think he was automatically referring to cryptocurrencies. Like what it says on the article, cashless and digital also includes non-cryptocurrency platforms like PayPal and such. There's a good chance that he's referring to countries like Sweden whereas transactions are pretty much mostly through credit/debit cards and non-crypto mobile payment platforms.

Same thought.  I believe the cryptofanatics do not have a reason to celebrate on this statement.  They are more incline to use VISA, CC,Paypal and other method of online payment than cryptocurrency unless this cryptocurrency are self made by the state.  Cryptocurrency especially Bitcoin is yet to be proven and needs alot of improvement to scale against this major online payment sytem.

[rosezionjohn]

Is this a hint that BAC is looking at crypto as not a competition but rather both ecosystems can exist together? Your thoughts.

Centralized crypto just like the JPM coin maybe but not the decentralized cryptos. Those American banks will remain hostile to bitcoin and other major cryptocurrencies.

[franky1]

what people do not realise is this.

1. banks are not the government, they are businesses
2. governments make banks notes for pennies and banks buy the bank notes at face value which puts funds into the treasury. without bank notes the treasury gets less. meaning the treasury will need to offset this via tax increases.
3. banks create value digitally by getting people to sign mortgage/credit agreements.
4. banks want to continue creating value but at less cost to themselves. and at an increased cost to taxpayers and bank users

the advantage crypto has for banks is that the banks can cut staff, shut local bank branches and not have to have large server farms.. but none of this benefits or changes the bank customers experience of banking (take LN as an example, require co-authorisation and opening hours)

[shinharu10282016]

Is this a hint that BAC is looking at crypto as not a competition but rather both ecosystems can exist together? Your thoughts.

I think his hint is that he doesn't mind the direction of the world as in digital money that will be taking over.

The main thing here is that banks won't go away despite a lot of people here thinking they will. Banks can easily adapt to the changed money climate, and they are faster than we are in doing so. In the end, it doesn't really matter what form of money we're using, they just want to make sure they can be part of it and charge fees in the process.

I see a time where banks will be the main entry points to crypto for people. It's convenient, you don't have to wire money to foreign bank, and KYC/AML isn't necessary because your bank has all your information already. I'm sure they'll throw in insurance as well as extra service.

I agree with you on all the things you've said especially the KYC and AML. People will technically abide by the law and not think about anything except if they are paying their taxes.

CEO of Bank of America could've seen wonders on the current situation of blockchain technology.

[XCANA]

What i love about the article is the fact that the CEO of Bank of America is: no matter which way are to go, we will definitely go, in as much we are going along the cashless society. Hey!!!, they have come to their right sense that, they can no longer act as a threat to the world of cryptocurrency rather allow it to grow. We have won the battle with the government.

[kryptqnick]

Bank of America (BAC) CEO Brian Moynihan embraced the digital money movement on Wednesday, saying his firm has “more to gain than anybody” from the booming trend of non-cash transactions.

“We want a cashless society,” Moynihan, who heads up the second largest U.S. bank, told attendees at Fortune’s Brainstorm Finance conference.

He pointed out that more than half of all money transactions are already processed electronically, with the rise of cryptocurrencies, and payment systems like PayPal (PYPL), Zelle, and digital wallets.

The banking sector has “already digitized,” Moynihan said on Wednesday. “The business has moved digitally and it will continue to move that way. It’s just figuring out how to add the value.”

https://finance.yahoo.com/news/bank-of-america-brian-moynihan-cashless-society-210717673.html

Is this a hint that BAC is looking at crypto as not a competition but rather both ecosystems can exist together? Your thoughts.

There is not enough information to make reasonable conclusions out of the article. It might be, of course, that the guy is all supportive of innovations and stuff, but he does not say that he is against fiat or that he actually supports cryptocurrencies. Maybe he just wants the bank to make even more money on transaction and maintenance fees that customers pay, you know. In fact, it's actually very likely that he meant the latter, 'cause if you try to google his name and the word 'crypto', you get articles from 2018 when he said that this market is dangerous and should be regulated.

[AjithBtc]

One day the coexistence of fiat system and cryptocurrency will take place. As a beginning more large scale firms have begun to have their own blockchain as well have partnered with other companies that function completely on blockchain. Already the world is getting chnaged to be a cashless society with majority of the transactions happening through mobile wallets that can be accessed with ease. Understanding the need of the people CEO of Bank of America might have come forward with the statement.

[squatter]

https://finance.yahoo.com/news/bank-of-america-brian-moynihan-cashless-society-210717673.html

Is this a hint that BAC is looking at crypto as not a competition but rather both ecosystems can exist together? Your thoughts.

Cryptocurrency doesn't have to be direct "competition" for retail and investment banks. Maybe it is for central banks who issue their own currency, but not so much for depository institutions like Bank of America. They don't care what currency you use; they just want to find a way to monetize it. People wanted Venmo, so the banks created Zelle. If people start using cryptocurrency, they'll create depository accounts and an internal network for instant payments that cuts out fees. There will always be a niche for this because people want convenience and ease of use -- even if it is antithetical to what Bitcoin is.

[BitHodler]

As long as people only use Bitcoin as store of value and an investment tool, banks and governments don't see it as competition, therefore they will tolerate it to some degree and I think we should be happy with that.

I strongly believe that if people would use Bitcoin as a currency, and it also scaled to onboard hundreds of millions of people, governments would have gone full nuts against it.

Fiat as stable token and crypto will harmoniously complement each other. Bitcoin doesn't scale and probably never will to the aforementioned degree. We need something else as day to day currency.