The Future of Money and Payments, According to Bank of America
According to Bank of America, "digital currencies look inevitable," and central bank digital currencies (CBDCs) and stablecoins are "a logical progression of today's monetary and payment systems," with "private sector benefits emerging at all phases of CBDC deployment."
Earlier this week, the worldwide research team at Bank of America (BOA) released a study on global cryptocurrencies, digital assets, and central bank digital currencies (CBDCs). The bank stated:
"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."
"In our opinion, CBDCs that use distributed ledger technology have the potential to change global financial institutions and may be the most significant technical innovation in the history of money," said BOA.
According to the research, 114 central banks are now investigating CBDCs, representing 58% of the world's nations and more than 95% of global GDP. It goes on to say that central bank digital currencies "do not change the meaning of money, but will most likely affect how and when value is transmitted over the next 15 years."
"CBDC issuances by central banks appear inevitable for three reasons," according to Bank of America. First, they "may increase efficiencies for cross-border and domestic payments and transfers," as well as "may decrease central banks' risk of losing monetary control" and "increase financial inclusion."
