Bank of America Analyst: Bank Acceptance a 'Crucial Hurdle' for Bitcoin

A new report from US-based Bank of America Merrill Lynch argues that bitcoin will go mainstream once banks start accepting it.

Jul 25, 2017 at 9:06 a.m. UTC
Updated Sep 13, 2021 at 6:45 a.m. UTC

A new report from US-based Bank of America Merrill Lynch argues that bitcoin will go mainstream once banks start accepting it.

According to CNBC, the report outlines methods by which cryptocurrencies can be weighed against other commodities, singling out safety and liquidity as potential factors. The paper was penned by Francisco Blanch, who works as the bank's lead commodity and derivatives strategist.

In the report, Blanch opines that a watershed moment would come should banks begin taking bitcoin as a form of collateral for products. While this represents a "crucial hurdle," he went on to say that "we are not aware of any major institution that takes cryptocurrency as collateral at the moment."

Blanch drew a comparison between bitcoin and commodities such as gold and silver, noting that, in the past year, volatility in bitcoin markets was seen to fall below levels witnessed in markets for the latter precious metal.

"Bitcoin's volatility is very high compared to the euro, the yen or even gold," he wrote, according to CNBC. "But it fell twice last year below the volatility of silver, the world's currency for 400 years."

Though not publicly available for view, the client-oriented report echoes those released by other Wall Street analysts, such as those from investment bank Goldman Sachs. That firm has released two client notes related to bitcoin since the start of the summer.

Hurdle race image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
LimeWire Signs Deal With Universal Music for Music NFT Licensing, Blockchain Gaming in Focus

The most valuable crypto stories for Wednesday, May 18, 2022.

The most valuable crypto stories for Wednesday, May 18, 2022.

2
Capital Flight or the Seeds of the Next Cycle?

With money leaving stablecoins and the industry as a whole, is there any good news?

With money leaving stablecoins and the industry as a whole, is there any good news?

3
Bitcoin Needed to Get Its Face Ripped Off

Now is the perfect time to learn all there is to learn about the crypto world.

Now is the perfect time to learn all there is to learn about the crypto world.

4
Market Wrap: Bitcoin Dips, Stocks Plummet as Volatility Spikes

Traders continue to hedge against further price declines.

Traders continue to hedge against further price declines.