The COO of Bank of America sees crypto as an asset rather than a competitor

Tom Montag, COO of Bank of America (BoA), spoke about cryptocurrencies in an interview on Thursday (November 4th). interview with CEO Michael Gronager at a conference of the blockchain analysis company Chainalysis in New York.

Bank of America COO Tom Montag (left) and Chainalysis CEO Michael Gronager (right)

Montag is also the BoA’s President of Global Banking and Markets and a board member. He is responsible for all business operations for corporations and institutional investors.

The COO said crypto reminded him of the beginnings of derivatives and admitted he didn’t understand stablecoins.

“I don’t understand it like everyone else … Is there really a dollar behind stablecoins?”

When asked if banks are competing with cryptocurrencies, Monday replied:

“I don’t see this as competition at all. I see it as another asset class … and people like it for a variety of reasons. “

Montag isn’t the only one who sees cryptocurrencies as an asset class. Investment bank Goldman Sachs said in May that bitcoin was an investable asset. In July, JPMorgan said many of its clients view crypto as an asset class they want to invest in.

Regarding whether Bitcoin is a store of value, Monday shared:

“I learned how to upgrade it as a global store of value. As an American, it’s hard to gauge how important this is when you’re used to a stable currency. “

Regarding the introduction of its own digital central bank currency (CBDC) by the US Federal Reserve (Fed), Montag emphasized: “It will be inevitable, but it will be fine.” Fed Chairman Jerome Powell said in September: “We are actively working to examine whether and in what form a CBDC should be introduced.”

Last month, the BoA started its crypto research and found that the digital asset is “too big to ignore”. The bank’s dedicated crypto research team was launched in July.

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