Bank of America's CTO Thinks That Cryptocurrencies Are Troubling

Bank of America CTO says digital currencies are obstructing experts from catching bad guys who are utilizing crypto payment frameworks for negative purposes.

Marcus Zallman
Read +
Follow Us

In an interview on CNBC’s Squawk Box, Chief Technical Officer of Bank of America Cathy Bessant, said that Bitcoin and the systems on which it is built on are "not transparent” and are hindering Bank of America's efforts in trying to stop crime. Bessant said it's critical to understand the two major use cases of digital currencies.

"As a payment system, I think it's troubling, because the foundation of the banking system is on the transparency between the sender and the receiver, and cryptocurrency is designed to be nothing of the sort. In fact [it's] designed to be not transparent.” That makes it tougher to police business transactions on the Internet, and Bessant believes that, "The way we sort of quote-unquote catch bad guys is by being transparent in the financial moment of money. Cryptos is the antithesis of that."

KYC & AML are key aspects for institutional banking and 'bad guys" can use cryptocurrencies to bypass security checks and systems deployed to unfoil such methods. Transparency is a key aspect in the banking world and that is counter intuitive to cryptocurrencies. Worldwide regulations of digital currencies are slowly being developed by various nations. Bessant’s comments may not be the exact opinion of BoA’s view on cryptocurrencies. Her main criticism is around transparency and while we are guessing, it seems that they are not in favour of adopting the technology. 

Image Credit: Bank of America's Cathy Bessant at BoA headquarters. Charlotte, North Carolina. (Photo by David Hume Kennerly)