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Wells Fargo Accused of Hypocrisy over Recent Crypto Confusion

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Global financial services firm Wells Fargo has been accused of hypocrisy over its flip-flopping recent position on cryptocurrency assets.

While the financial giant has previously claimed that it does not process crypto transactions, it now seems that the company is experimenting with its own digital coin.

Wells Fargo announced on Wednesday 18 that it will be working on its own stablecoin project. Generally, the crypto community has enjoyed poking fun at the apparent double-dealing taking place at the third largest bank in the US.

The company first expressed contempt for the crypto industry earlier this summer. In response to a question on the financial institution’s Twitter, a representative replied that the firm did not support crypto transactions:

Litecoin Moses {No XRP} ₿ ⧫ Ł@l3l2ucelee

· Jul 12, 2019

“Something fishy is going on with my bank Wells Fargo… I can’t buy crypto on cash app or coinbase… I tried to attach my debit card and it said “Card not found” and I just used it to pay my billsanybody else having this issue?”

Ask Wells Fargo
✔@Ask_WellsFargo

Thanks for reaching out to us. Unfortunately, Wells Fargo does not allow transactions involving cryptocurrency. -Josh

488
6:15 PM – Jul 12, 2019
Twitter Ads info and privacy

Obviously, after Wednesday’s revelation that the company is working on its own stablecoin digital currency, many took the opportunity to call the financial giant out for apparent hypocrisy or to interpret the news as a bullish signal for the cryptocurrency market.

A Reddit user joked that Wells Fargo was “FUDing” and FOMOing” at the same time, while a renowned podcaster and co-founder of Morgan Creek Digital, Anthony Pompliano, wrote the following in light of the stablecoin announcement:

Pomp
✔@APompliano


Warren Buffett owns almost 10% of Wells Fargo.

Wells Fargo is creating a dollar-backed digital currency.

So now Warren Buffett basically loves Bitcoin, right?

Although it’s fun poking banks for some of their hypocritical actions, it’s important to keep in mind that financial giants are only trying out the elements of crypto assets because they feel their very survival is under threat.

Faced by borderless, permissionless, almost free competition from cryptocurrencies like Bitcoin, bankers must act fast to preserve their existence. Their efforts, however, appear to be desperate moves in trying to stop consumers from turning to cryptocurrencies for enhanced financial services.

Had Bitcoin and subsequent cryptocurrencies not began to represent a real threat to the conventional banking system, it looks unlikely that any bank would be making major steps to creating its own digital settlement currency.

However, the banks closed network systems represent a very tiny fraction of the overall innovative potential of digital currency. This potential may ultimately eliminate much of the current banking business structure.

With all the buzz going around about cryptocurrencies at the moment, it’s comprehensible that several publications lump any attempt by a company at creating a digital cash in with crypto.

This term is one of the most popular on Google Trends and accusations of hypocrisy or excitement from the crypto community make for even more clicks and increased advertising revenues.

Still, there should be a collaborative effort to stop calling digital currencies like ones being created by Wells Fargo. They only represent just more than digitized versions of dollars.

In creating their systems, banks will surely be cautious of stripping away the really revolutionary properties of cryptocurrency. This leaves only a quicker, cost-effective means for banks to send other money. That is by little means the global-shaking change that Bitcoin pioneers believe is on the horizon.

Source: https://www.newsbtc.com/2019/09/18/wells-fargo-crypto/

About the author

Ezra Ondara

Ezra Ondara

Ezra Ondara is a football fanatic, and betting pundit. He specializes in product reviews and casino/gambling content, with interest in the aviation industry and space science. When he’s not at his desk crafting content, he is watching the English Premier League or space exploration videos on YouTube, or out of town with his family. Ezra values relationships and he’s committed to providing valuable content for readers.

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