Bank of America is considering cryptocurrencies to be cash equivalent. Cryptocurrency, such as Bitcoin, Ethereum, and other altcoins have boomed over the last few years. In 2017 alone, the number of different types of crypto more than doubled.
Crypto is the way of the future, and Bank of America now acknowledges it to be the same as cash or a cash advance.
BANK OF AMERICA FOLLOWS JP MORGAN CHASE
They’re the second major bank to do so, following in JP Morgan Chase’s footsteps. Bitcoin, Litecoin, Ethereum, and others are now viewed in the same light as cold hard cash.
Plus, they’re predicted to only keep growing. Bitcoin itself is predicted to go from $10,000 to 20,000 by the end of the year.
If you want to learn more about cryptocurrency and cryptocurrency as cash, keep reading this blog.
What’s the Best Type of Crypto for Cash?
Cryptocurrency is all basically the same. But, you’ll want to purchase the one that will see an increase in value. Say you buy Litecoin at 10 to 1.
Meaning 1 USD gets you 10 Litecoin. If Litecoin grows to 15 for 1 USD, then you’ll have made money. You’ll also want to have a cryptocurrency that’s widely recognized and accepted.
Plus, it would help if you got a cryptocurrency accepted by banks to make things easier on yourself. This is especially important since there are rumors of the world’s currency going off the dollar and on to crypto.
What Banks Use Cryptocurrency as Cash?
There are a few banks in the US besides Bank of America and JP Morgan Chase that accept crypto as cash. Banks such as Chime, Ally, and USAA. Plus two more, Goldman Sachs and Simple.
On a global view, there are a few other banks around who understand the importance of cryptocurrency. To name just a few, we have:
- Banco Masventas (Argentina)
- Bankera (United Kingdom)
- Bank Frick (Lichtenstein)
- Change (Estonia)
- Fidor Bank (Germany)
- Revolut (United Kingdom)
- Wirex (United Kingdom)
- Worldcore (Czech Republic)
Other banks either ban the use of crypto or have excessive limitations on them.
The Breakthrough of Accepted Exchanges
As mentioned above, JP Morgan Chase was the first bank to accept exchanges for cryptocurrency in the United States. This broke the mold, and Bank of America thought it was in their best interest to follow suit.
First, let’s talk about what exchanges are, and then we’ll discuss the accepted exchanges that are out there.
A cryptocurrency exchange is a business that allows you to move, trade, and buy crypto. You can trade crypto and other digital currency on these exchanges for things such as fiat money and other digital currencies.
The bank is offering cash management services to Coinbase and Gemini. Secondarily, they’re allowing dollar-based transactions for clients in the United States.
The exchanges use an ACH or Automated Clearing House with the banks. The majority of Coinbase and Gemini’s customers link their bank accounts through the ACH.
It should be noted that Coinbase and Gemini went through a thorough vetting process to get approved. We’re looking forward to seeing many other partnerships like these coming up all over the globe.
Cryptocurrency as Cash
As a society, we are creeping closer and closer to using cryptocurrency as a form of cash and a regular way to do business and pay for things.
The US has been slow to get the ball rolling but certainly, with Bank of America and JP Morgan Chase leading the way things should steamroll rather swiftly. If you need a hand to get started with cryptocurrencies then contact and book us today for a free consultation.
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FAQ ABOUT BANK OF AMERICA AND CRYPTOCURRENCY
Dows Bank of America accept Bitcoin?
The Bank of America does not yet accept bitcoin nor any other cryptocurrency. However, they consider it as cash. The bank insists that the lawful use of bitcoin is permitted. Of course, the user needs to comply with the bank’s terms and conditions.
Does Bank of America own Bitcoin?
No one really knows rather the Bank of America does own bitcoin or not. However, they own a lot of patents related to bitcoin and other cryptocurrencies. Seems like they believe in the technology, while they fear losing business and margins.
Do banks sell Bitcoin?
No! But that’s the good news about bitcoin. Actually, you don’t need a bank nor a bank account to own bitcoins. This is also why banks try not to support or even ban it. Nevertheless, if you use a bitcoin broker such as Bitstamp, Coinbase, Coinify, or Coinmama, you can connect your bank account to buy bitcoins. Most brokers do offer ACH bank transfers or SEPA for clients in Europe.