Though Bank of America (BofA) has been opposing cryptocurrency, it depends upon Blockchain-patents to succeed in the Financial services industry. BofA is believed to be one of the leading horses in the blockchain patent race, as it has added one more blockchain-patent to its patent-bucket on October 30, 2018.
In order to secure the private keys in an institutional organization, the company has filed this patent in April 2018. The patent, which is named as “Blockchain Encryption Tags,” shows the management between computing devices and blockchain encryption tags. In short, it records and stores a information related to a transaction. It offers a data security system to secure each block by integrating encryption and linking data units. Plus, it is the continued proposal of a cryptocurrency online vault storage system, which was initiated by BofA in 2014.
Catherine Bessant, the Chief Operations and Technology Officer at BofA, said that Blockchain technology is fascinating and they have tried to stay ahead in the competition by using this technology in the best way. They have more numbers of patents related to blockchain and cryptocurrency space, CNBC reported.
To appear more progressives in the financial services industry, BofA has also filed a patent for a cold storage system and another system so that it could easily handle a cryptocurrency transaction as well as a real-time conversion, CCN reported.
Cryptocurrency Threats To Its Business Process Model, Bank of America Says
Bank of America’s 10-K Summary with the Securities and Exchange Commission (SEC) was released on February 22, 2018. The 10-K is an annual report which shows the one-year financial performance of the company in detail.
It is stated that most people will use a cryptocurrency in the coming days. Those people will not maintain their own private keys, but they will entrust their funds to their respective banks. Alongside, many financial institutions will manage a large number of transactions by including a cryptocurrency transaction. A large number of cryptocurrency users could jump to other market participants, according to a report by SEC.
The growing competition may affect the business process model of BofA adversely as it may create an immense pressure of delivering products and services with lower prices or credit standards. Besides, developing industry standards and satisfying consumer needs through the adoption of new technologies like cryptocurrency could require enormous expenditures.
BofA wants to succeed in the financial services industry despite of facing many challenges from domestic and international financial institutions, Cointelegraph reported.
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