Bank of America now treats BTC and ETH as Cash

[shata]

The title should fit as "Bank of America now treats BTC and ETH as Cash Equivalent" and not as Cash per se. What differs cash and cash equivalents?

Cash is the money itself or fiat currencies and bills used to pay and send to any transactions involving meeting of minds. Also, it includes coins and currency notes. On the other hand, cash equivalents are investments readily available to convert into cash for not more than 3 months. Thus, Bitcoin is not considered as cash but rather cash equivalent, because if you convert btc, it will be cash right away. However, it does not apply to other crypto due to this potential reasons; either its the policy of the bank or because bitcoin is so liquid. Banks accept it and class it as cash equivalents. Therefore, what " cash" can do may not really be the same as to the "cash equivalents".

This may be the same to hear but for accounting and finance personnel out there, it connotes different types.

But of course, this is so predictable as institutional investors were so aggressive in bitcoin market seen last year 2019.


Source: https://www.investopedia.com/terms/c/cashandcashequivalents.asp

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[Latviand]

No! None of this matters!

Banks can't treat bitcoin like cash for the simple reason that they can't perform fractional reserve banking on it and that it's not subject to the same kind of inflation as cash.

Bitcoin is superior so they should treat it as such.

Bitcoin is a centralized currency and it is far different from cash. There are a lot of good and bad features of bitcoin, that's why it can be treated as a cash, so the Bank of America should learn more about it. There are also a lot of factors that can affect its price and treating it as a cash is very risky due to fluctuations. They have different importance and value so it is really irrelevant to treat them the same way. I don't know if US bank thought of this for so long, maybe their approach to this is unofficial and not that studied more enough to think of the reality of cryptocurrencies treating it like cash. Some government never thought of that thing because they are really different, they should be treated separately from the economy.

[QueenVera]

Reportedly US Banks are going the treat Bitcoin (BTC), Ethereum (ETH), and all crypto purchases same as Cash. In the crypto economy, this move is going to be a milestone.

Wow that's a welcome development and something the community has been wanting for a very long time but before you get our hopes all up, can I see some references or source of your news as news like this can easily be published by any  media house without an authentic source. While this is welcoming, the US bank should also realized not all cryptocurrency are cash as some are utility token.
They're mainly used as asset instead of what we mainly mistake it to be like ethereum that isn't a currreny.

[minairia3]

I am not sure that US banks treat Bitcoin and Ethereum as cash, because there is no official news from Bank of America. So don't be too
happy first, this is just a rumor spread by customers. The truth is still questionable. But if it is true that Bank of America treats Bitcoin and
Ethereum as cash, this will certainly be a milestone.

Sometimes rumor are really true and they were just hiding it to conceal the truth cause this may cause a sudden change on the market pacing. A news like this will give a huge pump and fomo will start. We all knew how USA so strict ablut blockchain technology and business related to it, so the posibility of this is still lies somewhere off the books. But If ever this news is true, the market will take off as two of the top coins will surely surge when this announcement of confirmation has been released.

[MCobian]

I'm sure you got the wrong information, because it is not possible for Bank of America to treat BTC and ETH as cash. Bitcoin prices are volatile
and cash is stable, then Bitcoin is decentralized while cash is centralized. Too many differences, logically it is not acceptable that Bitcoin and
cash are the same. Besides, the American government is very strict about cryptocurrency, so it's unlikely this news is true. We wait for new
updates about this.

[LogitechMouse]

Reportedly US Banks are going the treat Bitcoin (BTC), Ethereum (ETH), and all crypto purchases same as Cash. In the crypto economy, this move is going to be a milestone.

I think you are referring to this article.

Bank of America could treat transactions with Bitcoin as cash

just add it in the OP so everyone will see, it's nice if you will put a link of information you shared so we can verify, and so you will not punished by violating the forum rules which is plagiarism.

Regarding on the article, there is the word "COULD" which means that this is 100% sure that they will use BTC as Cash.

The OP's title is misleading as there is no ETH in the article although it is said that cryptocurrency in general is accepted.

Now with regards to the milestone thing, it will be a good thing for crypto as a whole but the chances of this to happen is relatively low and the article site isn't as reputable as other trusted sites out there so I don't believe that this will happen or should I say I'm not expecting for this to happen though.

[arwin100]

Reportedly US Banks are going the treat Bitcoin (BTC), Ethereum (ETH), and all crypto purchases same as Cash. In the crypto economy, this move is going to be a milestone.

I think you are referring to this article.

Bank of America could treat transactions with Bitcoin as cash

just add it in the OP so everyone will see, it's nice if you will put a link of information you shared so we can verify, and so you will not punished by violating the forum rules which is plagiarism.

Regarding on the article, there is the word "COULD" which means that this is 100% sure that they will use BTC as Cash.

The OP's title is misleading as there is no ETH in the article although it is said that cryptocurrency in general is accepted.

Now with regards to the milestone thing, it will be a good thing for crypto as a whole but the chances of this to happen is relatively low and the article site isn't as reputable as other trusted sites out there so I don't believe that this will happen or should I say I'm not expecting for this to happen though.

I'm not gonna buy this either there are so many news coming just to create a hype so maybe this is another attempt, I want to see this news on biggest crypto media so that we can verify it that it's really happening in certain bank. But I'm sure many want that to happen since it's another level of adoption and people can gain trust with that thing since imagine the banking institution use that for good transactions.

[Nhor1011]

Reportedly US Banks are going the treat Bitcoin (BTC), Ethereum (ETH), and all crypto purchases same as Cash. In the crypto economy, this move is going to be a milestone.

Oh,really?! Please add the link to this good news for US people.It could be a better way at this current pandemic situation to avoid contact with virus in a fiat money. Hope that other country will follow this steps of US regarding cryptocurrency.

[Debonaire217]

It is way too impossible to happen OP, bitcoin and Ethereum possesses characteristics that could affect the economy in a big way, perhaps, the definition of cash is physical money that you can transact. For example, if a store indicates a "cash only" payment, how come bitcoin and ethereum could deliver that? or maybe the thoughts are, BTC and ETH to be treated the same way as fiats. But still, impossible because of the volatility and characteristics these crypto has.

[YuginKadoya]

It is way too impossible to happen OP, bitcoin and Ethereum possesses characteristics that could affect the economy in a big way, perhaps, the definition of cash is physical money that you can transact. For example, if a store indicates a "cash only" payment, how come bitcoin and ethereum could deliver that? or maybe the thoughts are, BTC and ETH to be treated the same way as fiats. But still, impossible because of the volatility and characteristics these crypto has.

Posted by Alani https://www.reddit.com/r/CryptoCurrency/comments/hi78v4/cryptocurrency_is_considered_a_cash_equivalent/ they had taken down the post right now maybe it is just fake news and they can not lump bitcoin and other cryptocurrency with Cash because of the volatileness of cryptocurrency Cash don't possess many characteristics Bitcoin and other cryptocurrency has, But I think in a good way treating cryptocurrency as cash may sure take it to a new level and many will surely recognize it even further.

[teosanru]

Reportedly US Banks are going the treat Bitcoin (BTC), Ethereum (ETH), and all crypto purchases same as Cash. In the crypto economy, this move is going to be a milestone.

Don't you think even if it's done then it would effect you negatively too. You can be held for your taxes directly when you earn btc because you are earning money. Moreover it's make easier for them to confiscate your money because now they will be confiscating cash. I don't know why are people Happy on this as it was already legal in US.

[pawanjain]

We don't know yet if this information is true or not and besides that even if it was true there would be more complications to it since they have not provided any clear information and have just made a statement. Considering cryptocurrency similar to cash has it's own pros and cons.
For instance, crypto might be taxed in the same way as cash and hence we will have to pay tax on every purchase we make.
If crypto is considered as cash then there will be more adoption in the US since people will accept crypto payments too.
But then it all depends on how the US government regulates the use of crypto.

[Amel]

Reportedly US Banks are going the treat Bitcoin (BTC), Ethereum (ETH), and all crypto purchases same as Cash. In the crypto economy, this move is going to be a milestone.

A few days ago, it seemed that Bitcoin would band in America. Although many people in America are involved with Bitcoin. But if that happens in the end, it's good news for all Bitcoin and Ethereum users. There are doubts as to where you got the information from and how true it is.

[pooya87]

The title should fit as "Bank of America now treats BTC and ETH as Cash Equivalent" and not as Cash per se. What differs cash and cash equivalents?

actually the correct title should have never named any coins since according to the posts in previous page by @philipma1957 the document never mentions any cryptocurrency by name and uses the general term for all of them. which makes this topic another desperate attempt by ETH bagholders who keep trying to stick their shitcoin to bitcoin and pump it that way using any "fake" news they can find!

[jademaxsuy]

The title should fit as "Bank of America now treats BTC and ETH as Cash Equivalent" and not as Cash per se. What differs cash and cash equivalents?

Cash is the money itself or fiat currencies and bills used to pay and send to any transactions involving meeting of minds. Also, it includes coins and currency notes. On the other hand, cash equivalents are investments readily available to convert into cash for not more than 3 months. Thus, Bitcoin is not considered as cash but rather cash equivalent, because if you convert btc, it will be cash right away. However, it does not apply to other crypto due to this potential reasons; either its the policy of the bank or because bitcoin is so liquid. Banks accept it and class it as cash equivalents. Therefore, what " cash" can do may not really be the same as to the "cash equivalents".

This may be the same to hear but for accounting and finance personnel out there, it connotes different types.

But of course, this is so predictable as institutional investors were so aggressive in bitcoin market seen last year 2019.


Source: https://www.investopedia.com/terms/c/cashandcashequivalents.asp

Oh really this great of course.

However, I think it is still subject for scrutinization due to the fact that btc is a decentralized system and holds huge potential losses or gains. This is the risk part of btc and if everyone accept it then pretty sure it can go big in the future.

Probably for now banks consider bitcoin because of quite huge of flow of money in cryptocurrency. They can earn to it everytime clients wants to process or exchange btc to fiat currency. This means another earnings for the bank.

[Vaculin]

Reportedly US Banks are going the treat Bitcoin (BTC), Ethereum (ETH), and all crypto purchases same as Cash. In the crypto economy, this move is going to be a milestone.

I think you are referring to this article.

Bank of America could treat transactions with Bitcoin as cash

just add it in the OP so everyone will see, it's nice if you will put a link of information you shared so we can verify, and so you will not punished by violating the forum rules which is plagiarism.

Regarding on the article, there is the word "COULD" which means that this is 100% sure that they will use BTC as Cash.

Maybe you meant not 100% sure? that "could" word, not sure.

The OP's title is misleading as there is no ETH in the article although it is said that cryptocurrency in general is accepted.

It's in the article I shared, there you go.

According to the letter, all transactions related to Bitcoin, Ethereum, Litecoin and other cryptocurrencies could be treated as “cash advance”.

Now with regards to the milestone thing, it will be a good thing for crypto as a whole but the chances of this to happen is relatively low and the article site isn't as reputable as other trusted sites out there so I don't believe that this will happen or should I say I'm not expecting for this to happen though.

I also think there's a little chance but if this particular bank will treat it that way, it doesn't mean the who banking industry in the world would follow.

[finaleshot2016]

What's your source mate? We all knew that a big economy like the US doesn't want to adopt cryptocurrency because of its volatility and can't be considered as safe to use.

The source is a reddit post: https://www.reddit.com/r/CryptoCurrency/comments/hi78v4/cryptocurrency_is_considered_a_cash_equivalent/

It honestly isn't the best type of source to verify a claim. The submission has now been removed by mods. Perhaps it was even a suspected fake.
If true, we shouldn't rush to consider this good news. A probable cause of this decision could be that it was done to deter abuse of card benefits programs. Right now there are some services that allow you to buy crypto with cards without extra cost. This could be used to rack up miles on a bonus program. This was done also when the FED was selling coin stacks for CC payments for free. Banks were quick to catch up of course.

I see, it's just a Reddit post, some people thought Reddit entries are always reliable. It's true that it'll not gonna be easy and will have a lot of changes in the economy, especially in taxation. Bitcoin has a lot of potentials but let's not forget its downside when we legalize the use of it.

[Rafiqul]

I wouldn't believe such news unless it goes on an official blog post or unless the banking officials of the said organization releases an official statement regarding this. Most of us here are expecting for banking entities to at least recognize bitcoin and other cryptocurrencies as equivalent to cash, or at least can be exchanged to cash but so far there isn't really a bank in the world that has continued with this idea. This is too far-fetched on today's times but not impossible, that's for sure.

Also, append a source whenever you try to post such news that might cause a buzz. Anyone can say anything but people won't believe it unless it can be backed up by facts and credible sources.

I can't believe this news like you. Because we have not received any official statement from it. However, sources must be added when making such posts; This can lead to confusion. If it is true that Bank of America has done the same with Bitcoin, Etherium and all crypto purchases as cash, it will definitely be a milestone for crypto.

[htsy585]

Reportedly US Banks are going the treat Bitcoin (BTC), Ethereum (ETH), and all crypto purchases same as Cash. In the crypto economy, this move is going to be a milestone.

By merely going through your write-up, i don't think this news is authentic beside you didn't back it up with any source. Let's even assume it happens to be true, i don't think it is actually a milestone for this industry. We are pushing for mass adoption and recognition but definitely not like this one because if the bank of AMERICA should ever treat the purchase of cryptos as a cash, we will definitely lose the good side of crypto besides i see this as a way of feds trying to milk out from crypto enthusiasts

[rathaha10]

Reportedly US Banks are going the treat Bitcoin (BTC), Ethereum (ETH), and all crypto purchases same as Cash. In the crypto economy, this move is going to be a milestone.

By merely going through your write-up, i don't think this news is authentic beside you didn't back it up with any source. Let's even assume it happens to be true, i don't think it is actually a milestone for this industry. We are pushing for mass adoption and recognition but definitely not like this one because if the bank of AMERICA should ever treat the purchase of cryptos as a cash, we will definitely lose the good side of crypto besides i see this as a way of feds trying to milk out from crypto enthusiasts

I agree with you, this is indeed not a good news even if it's true becuase it is a way of the government trying to control the activities of bitcoin and if that happens, bitcoin will lose its original use case which is meant to be a decentralised digital assets without no central authority. Next time, posters should always attach a good reference source so that we would be able to verify the originality of the news