As Donald Trump’s first few days in office creates some confusion among cryptocurrency investors about just what he plans to do for the sector, Bank of America (BAC) is making one thing clear: the banking industry stands ready to go if regulators allow crypto payments.
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Speaking to CNBC on the sidelines of the World Economic Forum (WEF) in Davos, Switzerland, CEO Brian Moynihan said banks have the technology and will to make crypto payments a reality should it be allowed.
“If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it,” he told the network.
Although U.S. banks have allowed their institutional and wealth management divisions to take part in crypto trading, including Bitcoin ETFs, they have largely steered clear of letting retail customers use crypto as a means of payment.
Crypto Payments Are Not Investments
President Trump has signalled a warm embrace for the crypto market but so far, the specifics about what direction this may take, such as the treatment of crypto payments, remain unclear.
Bitcoin surged to a new all-time high above $109,000 just before Trump’s inauguration on hopes the incoming president will be friendly towards the industry.
However, with no mention of cryptocurrencies in his address, the market has been on a volatile ride since.
Moynihan, in his interview with CNBC, was keen to point out the difference between cryptocurrencies being used as a means of exchange and their use as a store of value. It’s “really a separate question,” he said.
Nevertheless, a loosening of rules around the transaction side could be a benefit to a number of cryptocurrency-exposed stocks.
BAC is also well positioned, with Moynihan adding that the bank has “hundreds of patents on blockchain already.”
The company last week reported a healthy Fiscal fourth quarter earnings beat, with sales and trading revenues rising 10% and estimates for 2025 net interest income revised higher.
Is Bank of America a Buy, Sell, or Hold?
Wall Street analysts have a Strong Buy consensus rating on BAC, based on 17 Buys and two Holds over the past three months. The average BAC price target of $52.94 implies over 13% upside from the current level.
