Johann Wilfred
Spanish financial services company BBVA has advised its wealthy clientele to allocate a portion of their investment towards cryptocurrencies, as per a Reuters report. Specifically, the private banking arm of the business is advising clients to put 3% to 7% of their portfolio into cryptocurrencies.
This marks a departure from the typical risk-averse attitude adopted by banks, which do not recommend clients purchase crypto, but carry out their investment purchases as per the requirements of the investor. U.S. Banks and Regulators have repeatedly warned investors in the past to be wary of cryptocurrency as an investment choice.
Prior to this, BBVA received approval from the Spanish Securities and Exchange Commission to execute trades for Bitcoin and Ethereum and provide custody for the digital assets as well, according to a company press release.
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U.S. Banks shift stance towards crypto
Heads of major U.S. institutions have bashed the idea of investing in crypto, but are slowly warming up. JP Morgan’s CEO Jamie Dimon is one of them, repeatedly criticizing cryptocurrency and its utility over the past years.
When asked by U.S. Representative Josh Gottheimer at the ‘House Hearing on Bank Oversight’ in 2022 whether Jamie Dimon thinks the U.S. would be “miss the boat” on digital currencies to superpowers like China, he responded.
“I’m a major skeptic on crypto tokens which you call currency, like Bitcoin. They are decentralized Ponzi schemes.”
Recent events suggest the investment bank will start to develop crypto products. J.P. Morgan made a trademark application for “JPMD”, which was initially thought to be a stablecoin, but is now confirmed to be a deposit token.
Peter Schiff remains critical of crypto
Another anti-crypto voice is Peter Schiff, who regularly posts on X, bashing cryptocurrency. A recent post on the first day of the Israel-Iran skirmish was critical of Bitcoin, which has been likened to digital gold due to its scarcity.
Amid skepticism, there is a loosening of regulations for digital assets, mainly due to the pro-crypto Trump administration rolling out legislation that attempts to provide frameworks for the emerging sector. Recent key events include the passing of the GENIUS Act regulating stablecoins and the swearing in of Paul Atkins as the SEC, who is pro-crypto and has heavy involvement in the sector.
