Bank of America is anticipated to play a big role in the Cryptocurrency industry in the short term. In 2014, the award-winning bank filed for a patent right to store Digital Tokens for institutions. On November 13, 2018, the United States Patent and Trademark Office issued a go-ahead for the bank to roll out its Crypto services.
Hence, the BoA is set to offer vault-based security for Cryptocurrencies in a move that is aimed to reduce the rampant cases of theft that many Crypto holders have been facing.
Crypto And Traditional Banks Are Defying Decentralization
Satoshi Nakamoto envisioned his Bitcoin Cryptocurrency as a full decentralized Token of value that shuns the centralized currency. However, many banks such as Bank of America are choosing to instead support the use of Cryptocurrencies with the motive of tapping opportunities that Crypto transactions proffer.
Blockchain Adoption Is Surging
In the mainstream market, the adoption of Blockchain is gathering pace. For example, in a US midterm election, Voatz platform used Blockchain technology to offer mobile-based voting solutions for overseas military personnel and veterans. The system prevented voter fraud in this voting class as well as ensured that all voters participate in the exercise regardless of their location.
Additionally, Blockchain is being applied in other areas such as social media, fashion, finance, remittance, etc. that require a heavily secured infrastructure.
Crypto Adoption Is Yet To Pick Up
As Blockchain adoption gathers pace, the adoption of Cryptos is stagnating due to a variety of factors. Further, the few Cryptocurrency holders are not using Digital Tokens in daily purchases making Cryptos to be viewed as more of speculative assets than currencies.
This is making many people be skeptical of the anticipated paper money to Digital currency transition that has been forecasted.
Bank Of America Is Offering A Solution That May Spur Crypto Adoption
The Bank of America is set to offer Crypto custody services that aggregates Digital Token deposits and secures them in an offline vault for security. Research shows that Crypto security is one of the factors that is preventing mass adoption as most Crypto wallets are vulnerable to hacks and theft.
In the patent application, the bank acknowledges the fact that Crypto-denominated financial services are becoming common and it is the company, therefore, intends to offer a service that benefits Crypto holders.
Following the successful launch of the service, other institutions may follow the lead from the Bank of America. This could consequently make the use of Crypto to be accepted universally as a unit of purchasing and lead to a surge in adoption.
The Crypto Custody Services Will Offer Convenient
The patent has a facet that highlights about the fees problem that Crypto holders face when converting Cryptos as they often need third parties to act on their behalf. CNN notes that the solution from the Bank of America would eliminate the problem as the solution will allow the bank transact on behalf of clients and save them transaction fees.