Before the U.S. Senate, banks were cautious about cryptocurrencies before COVID-19 testimony

Executives of major Wall Street banks will attend the US Senate Banking Committee on Wednesday to discuss the role of their financial institutions in the US economic recovery.

Democratic lawmakers plan to fire some major bank executives whose companies saw record profits during the COVID-19 pandemic, while ordinary Americans are struggling to make ends meet.

In the prepared testimony Published On Tuesday, the CEOs of Bank of America, Citigroup and Wells Fargo described their respective banks’ responses to major challenges such as inequality, diversity, climate change, taxation and how banks deal with cryptocurrencies.

This year, with the opening of major financial institutions to digital assets, there has been a record bull market in the cryptocurrency market, and trading desks and custodians have been added to handle customer interest in major cryptocurrencies such as Bitcoin (Bitcoin).

Brian Moynihan, Chief Executive Officer of Bank of America, testified Say Banks are continuing to evaluate the benefits, risks, and customer needs of crypto-related products and services. He said: “At present, we do not borrow cryptocurrency, nor do we operate a banking company whose main business is cryptocurrency or promoting cryptocurrency transactions and investments.”

Moynihan said that Bank of America is also evaluating new technologies, such as distributed ledger technology, which may bring value to the bank’s customers. However, even though Bank of America has more than 60 blockchain patents, the bank “has still not found large-scale use cases,” Moynihan said.

Similarly, Citigroup CEO Jane Fraser (Jane Fraser) also outlined a viable encryption method, Description Banks will need to ensure clear control and governance before transacting with cryptocurrencies. Fraser wrote: “Citi focuses its energy and energy on understanding the changes in the digital asset field and the use of distributed ledger technology, including the needs and interests of our customers, regulatory development and technological advancement.”

Charles Scharf, CEO and President of Wells Fargo Bank Say The company has been paying close attention to developments surrounding cryptocurrencies. Scharf pointed out that “digital assets have become alternative investment products, although their status as currencies and payment mechanisms is still unstable.” The executive also mentioned that Wells Fargo is preparing to launch block-based in the bank’s global branch network. Pilot project for chain settlement services.

The Senate Banking and House Financial Services Committee will also hear speeches from the CEOs of JPMorgan Chase, Goldman Sachs and Morgan Stanley.The last two Bring in RiseImitation encryption service Earlier this year, it was reported that the former was considering Open an encrypted trading desk.