Bank of America admitted that cryptocurrencies are threatening its business model

According to cointelegraph media reports, Bank of America, one of the world’s largest financial institutions, acknowledged in its annual report that cryptocurrencies are posing a threat to its business model. According to a report Bank of America submitted to the U.S. Securities and Exchange Commission:

“Our inability to adapt our products and services to evolving industry standards and consumer preferences could harm our business,”

…The competitive landscape may be impacted by the growth of non-depository institutions that offer products that were traditionally banking products as well as new innovative products,” BoA forecasts.

…This can reduce our net interest margin and revenues from our fee-based products and services. In addition, the widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services[.]”

Customers can choose to do business with other market participants in the business or offer products in areas that we believe are speculative or risky, such as cryptocurrencies. Increased competition may adversely affect our earnings because our products and services require additional investment to lower prices or credit standards to improve the quality of our technology and to deliver or reduce our market share or to influence our customers and us Business wishes.

The encrypted currency has gained a reputation in recent months – especially after its price once reached a new high of nearly $ 20,000 in December last year, and futures contracts have been added to two major U.S. exchanges.