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Sunday, August 7, 2022

Bank Of America Believes Adoption Of Stablecoin Is Inevitable

According to the Bank of America, it seems that the country will finally be moving towards creating its own central bank digital currency. The crypto strategists for this financial institution, Alkesh Shah and Andrew Moss, recently wrote in a note on Monday that CBDCs had turned into quite an inevitable evolution of the electronic currencies of today- as reported by Bloomberg.

The analysts mentioned that they expect the adoption of stablecoin and its use for payments to increase drastically over the next few years as more and more financial institutions would explore digital asset custody and trading solutions. 

Bank Of America might explore CBDC Adoption

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At the same time, a report on Thursday- Money and Payments: The US Dollar in the Age of Digital Transformation- from the Federal Reserve Bank did potentially weigh up the disadvantages and benefits of the country potentially adopting a CBDC- if they listened to the Bank of America.

It considered whether a central digital currency would potentially improve the effective and safe domestic payments system for households and businesses as the payments system continues to evolve over time. 

Meanwhile, the crypto strategists for the Bank of America, Shah, and Moss, have stated that the use of digital currencies that are issued by private companies will surely grow. Currently, the liability for existing forms of such digital currencies like online bank accounts belongs to private entities.

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A CBDC is simply a digital version of the fiat currency of the country, such as the USD. They came into the spotlight in 2020, when The Bahamas launched the first CBDC in the world, the Sand Dollar. And it has been reported that only the Bank of America can advise the Federal Reserve Bank on launching a CBDC. 

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