American stance on cryptocurrency has just taken an unexpected turn as the Bank of America released a report titled “Digital Assets Primer: Only the first inning.” The report is a result of research led by the head of Global Cryptocurrency and Digital Asset Strategy, Alkesh Shah, and it provides a thorough analysis of the current state of the blockchain and crypto industry.
The report also includes the likes of DeFi, the NFT market, and more, and the conclusion that it provides may change things for the crypto sector’s future in the United States. Specifically, the report claims that the crypto industry has become “too large to ignore.”
The paper specifies that there are approximately 221 million users who used DeFi services, traded, invested, or used crypto in some way, and that the figure continues to grow. Simultaneously, institutional investors are participating in a growing number, clearly indicating that the crypto industry has grown to be more than a passing phenomenon and that retailers are no longer the only ones driving it.
The most interesting result of the paper, however, is the fact that it changed the stance of the Bank of America towards digital currencies. In an official PR, Alkesh Shah managed to maintain an agnostic stance, pointing out that the crypto industry is more than just Bitcoin. However, he did note that “Bitcoin is important.”
Bank of America highlighted that, in the first half of 2021 alone, the DeFi ecosystem received almost $17 billion from institutional investors — a much larger amount than the recorded $5.5 billion that it got in 2020.
Finally, the research suggests that blockchain technology may radically change the way people interact with the world in coming years, even stating that it is expected “in the near future.”
The report is in sharp contrast with the Bank of America’s earlier reports, where it insisted that Bitcoin is too volatile, too impractical, and essentially useless as a store of value. The report may have helped drive Bitcoin’s price up a bit, as the coin just reached $50,000 at the time of writing, after growing by 5.10% in the last 24 hours, and by 19.59% over the last 7 days.
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