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Bank of America expects big things from blockchain, DeFi and NFTs

Updated: Aug 31, 2024
Published: Oct 5, 2021
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Traditional financial institutions are starting to admire the cryptocurrency space.

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BOA is bullish on Ethereum, NFTs and DeFi

The Bank of America has published a new report where it discussed the cryptocurrency and blockchain industry. Per the report, the bank called blockchain technology the most exciting new market in decades.

The financial institution added that it is bullish about the blockchain space and the emerging markets such as decentralized finance (DeFi), decentralized apps (dApps), and nonfungible tokens (NFTs.)

The report said,

In the near future, you may use blockchain technology to unlock your phone; buy a stock, house or fraction of a Ferrari; receive a dividend; borrow, loan or save money; or even pay for gas or pizza.
The Bank of America praised blockchains such as Ethereum for their smart contract features, stating that they are the key to the success of DeFi and NFTs. According to the bank, Bitcoin remains the leading cryptocurrency with a market cap of over $900 billion. However, the crypto space has now evolved to be more than just Bitcoin. “We believe crypto-based digital assets could form an entirely new asset class,” the report added.

BOA is concerned about the high prices of NFTs

The traditional financial institution stated that while it is a fan of the nonfungible tokens (NFTs), it is concerned by their high prices. The bank wrote that “Simple images like a black background with a few words of text make us concerned that there are heightened risks in this segment that need to be fully understood before NFTs can achieve true adoption.”

Despite that, the BOA categorized DeFi and NFTs as the most innovative in the cryptocurrency space at the moment. Bank of America, like other leading financial institutions such as JPMorgan, Morgan Stanley and Goldman Sachs, has been slowly entering the cryptocurrency space in recent years.

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