Fun

Bank of America: ‘Digital Currencies Appear Inevitable’

News Feed - 2023-01-22 01:01:51

Bank of America: "Digital Currencies Appear Inevitable"


Bank of America says “digital currencies appear inevitable,” adding that central bank digital currencies (CBDCs) and stablecoins are “a natural evolution of today’s monetary and payment systems.” The bank expects “private sector beneficiaries to emerge in all phases of CBDC implementation.” Bank of America on Future of Money and Payments


Bank of America (BOA)’s global research team published a report on global cryptocurrencies, digital assets, and central bank digital currencies (CBDCs) earlier this week. The bank wrote: Digital currencies appear inevitable. We view distributed ledgers and digital currencies, such as CBDCs and stablecoins, as a natural evolution of today’s monetary and payment systems.


“Our view is CBDCs that leverage distributed ledger technology have the potential to revolutionize global financial systems and may be the most significant technological advancement in the history of money,” BOA described.


The report explains that there are currently 114 central banks exploring CBDCs, representing 58% of countries globally and over 95% of global GDP. It also notes that central bank digital currencies “do not change the definition of money, but will likely change how and when value is transferred over the next 15 years.”


According to Bank of America, “CBDC issuances by central banks appear inevitable for three reasons.” Firstly, they “may increase efficiencies for cross-border and domestic payments and transfers.” In addition, they “may decrease central banks’ risk of losing monetary control” and “increase financial inclusion.” Private Sector Critical for CBDC Development


The Bank of America report adds that “the private sector is critical for CBDC development and issuance,” elaborating: Central banks and governments can’t build new financial systems based on distributed ledger technology alone and have indicated that they will leverage the private sector to drive digital asset innovation. We expect private sector beneficiaries to emerge in all phases of CBDC implementation.


For example, the report notes that governments may “award contracts to payments and consulting companies in exchange for expertise.”


Bank of America also pointed out some risks. “CBDC issuance and adoption could also increase the frequency of bank runs if not properly designed,” the bank warned, adding that “During times of stress in the banking system, people could withdraw deposits and exchange them for CBDCs, given that there is no credit or liquidity risk if distributed with the direct and hybrid approaches, increasing financial stability risks.” The report concludes: However, central banks could mitigate this risk by introducing CBDC holding limits, either on a temporary or permanent basis. Tags in this story Bank of America, Bank of America CBDCs, Bank of America central bank, bank of america crypto, Bank of America cryptocurrencies, Bank of America digital currencies, Bank of America digital currency, BOA, Bofa, CBDCs, Digital Currencies


Do you agree with Bank of America? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. JPMorgan CEO Jamie Dimon Calls Bitcoin "Hyped-up Fraud" — Expects Satoshi Nakamoto to Increase BTC Supply Cap FEATURED | 1 day ago Crypto Lender Genesis Files for Bankruptcy Following SEC Lawsuit FEATURED | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleJim Cramer Thanks SEC Chairman for Standing up to ‘Crypto Bullies’ Seeking Spot Bitcoin ETF Approval Next articleDarknet Market Solaris Hacked by Competitor, Elliptic Reveals Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"


The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments

News Feed

Ezra Reguerra10 hours agoTether’s Ardoino says it’s now a top buyer of US Treasury bills, holds $72.5BThe amount of exposure places Tether in the top 22 biggest holders of U.S. Treasury bills, ranking above countries
Vaneck Files for Bitcoin Futures ETF Following SEC Chair’s BTC Futures Regulation Statements
Vaneck Files for Bitcoin Futures ETF Following SEC Chair’s BTC Futures Regulation Statements Following a number of statements this week from the U.S. Securitie
Sichuan’s Blockchain Park: Chengdu Government Officials Welcome Bitcoin Miners
Sichuan"s Blockchain Park: Chengdu Government Officials Welcome Bitcoin MinersIn mid-August officials from the Chinese province of Sichuan approved a number of enterprises that mine
Novogratz’s Galaxy Digital raising $100M to fund crypto startups: Report
Jesse Coghlan37 minutes agoNovogratz’s Galaxy Digital raising $100M to fund crypto startups: ReportGalaxy Digital’s venture arm is in the initial phases of spinning up a $100 million fund, joining other VCs who are r
Brian Quarmby3 hours agoVictim of 90 ETH exploit set to claw funds back after hacker was blacklistedThe hacker’s wallet, with over $100,000 worth of USDT, was blacklisted and frozen, while the victim had been drained o
IMF Says Nigerian CBDC Drawing Global Interest, Warns of Associated Risks
IMF Says Nigerian CBDC Drawing Global Interest, Warns of Associated Risks The International Monetary Fund (IMF) has acknowledged that the recently launched Nigerian central bank di
Cardano Price Prediction: Analyst Says 80-90% Correction Is Over With 100% Jump Imminent
Este artículo también está disponible en español. The Cardano pricehas faced severe downward pressure compared to other cryptocurrencies in the past few weeks. ADA recent
Dollar-Cost Averaging Crypto Profits: Low-Risk Bitcoin Investing Without All the Stress
Dollar-Cost Averaging Crypto Profits: Low-Risk Bitcoin Investing Without All the Stress Bitcoin prices and a number of other digital assets have grown significan
Bitcoin whales blamed as BTC price slips 2.8% after nearing $66.5K
William Suberg7 hours agoBitcoin whales blamed as BTC price slips 2.8% after nearing $66.5KBitcoin bulls’ hopes are dashed once again as liquidity grabs erase the latest BTC price recovery.4867 Total views7 Total share
ECB Hikes Interest Rates by 50bps; Signals Need for Further Hikes to Fight Inflation
ECB Hikes Interest Rates by 50bps; Signals Need for Further Hikes to Fight Inflation The European Central Bank (ECB) decided to hike three of its key interest rates by 50 basis poi
Mastermind of Bitcoin Mining Ponzi Scheme Extradited to the US: $20 Million in Victims’ Funds Laundered
Mastermind of Bitcoin Mining Ponzi Scheme Extradited to the US: $20 Million in Victims" Funds Laundered The US government says it has extradited Gutemberg Dos Sa
TON Bullish Pattern Signals Breakout Ahead — 40% Rally Loading?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu