EDITOR'S NOTE: Bank of America’s outgoing COO, Tom Montag, spoke about all things digital currency-related at a conference hosted by Chainalysis last week. Business Insider compiled seven of his most interesting quotes from that event. He said that it is “inevitable” that the Fed will launch its own central bank digital currency (CBDC), he’s “nervous” about currency-backed stablecoin, and that he doesn’t see crypto as “competition” for banks. He also talked about the importance of value-storing financial devices (like gold) in these turbulent economic times and that he does think Bitcoin “could” provide that.
- Bank of America COO Tom Montag said cryptos remind him of the early days of derivatives.
- At a conference hosted by Chainalysis, he also said the launch of central bank digital currencies is inevitable.
- Montag said he came around to understanding bitcoin as a store of value.
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Bank of America COO Tom Montag shared his thoughts Thursday on cryptocurrencies, stablecoins, and central bank digital currencies in a conference hosted by Chainalysis in New York, where he was interviewed by the software firm's CEO, Michael Gronager.
Montag, who will retire at the end of the year, has been at the helm of BofA's massive investment banking unit and has been responsible for all of the businesses that serve companies and institutional investors, including the firm's global research and global markets sales.
Here are Montag's 7 best quotes from the conference, lightly edited and condensed for clarity:
- "They remind me of derivatives" in their early days. - On cryptocurrencies today
- "I don't understand that as well as everyone in the room ... you're just always nervous. Is there really a dollar behind stablecoin?" - On his views on stablecoins
- "It will be inevitable, but it will be fine." - On the Federal Reserve launching CBDCs
- "I don't view it as competition at all. I view it as just another asset class ... and people like it for all sorts of different reasons." - On the perception that banks are in competition with crypto
- "I came around to how this could have value as a global store of value. It's hard to appreciate the importance of that as an American when you're used to having a stable currency." - On bitcoin
- "Any time you can make assets more liquid, that'll lead to positive change for the world." - On improving the financial system
- "You're looking at a sea of data. You need algorithms that can automatically surface what you're looking for." - On his advice to crypto firms building out compliance programs
Originally posted on Markets Insider.