Bank of America considers cryptocurrencies to be cash equivalent
Join LBRY and EARN 1$ just to signup, you can sell it on Bittrex: https://lbry.tv/$/invite/@shadowcrypto:2
Bank of America, the second-largest bank in the United States, made it clear that they view cryptocurrencies as a cash equivalent.
In early April, Bank of America reported some changes made to its credit card terms and conditions. One of the most interesting changes has to do with the types of transactions that the bank takes into account. As explained by the bank, because they consider cryptocurrencies as cash equivalents, they will be treated as cash advances.
The new deal that cryptocurrencies will have leaves them in a status similar to that of ATM withdrawals with credit cards. Depending on the credit card of said bank, the user will have to pay an additional commission of 3% to buy cryptocurrencies.
This is how Bank of America joins other banks such as JP Morgan, Chase, and Citigroup, which seek to distance themselves from the purchase of cryptocurrencies through credit cards. For their part, Visa and Mastercard already consider Coinbase deposits as a "cash advance", so users must pay a 5% fee.
Bank of America and cryptocurrencies
That one of the most important banks in the United States considers cryptocurrencies as cash is important since few financial institutions consider the same thing. The U.S. Securities and Exchange Commission (SEC) considers various cryptocurrencies as a security, with the exception of bitcoin. The Commodity Futures Trading Commission (CTFC) considers cryptocurrencies as a product. And the United States Internal Revenue Service handles cryptocurrencies as additional income.
