Bank of America: The United States Will Release A CBDC By 2030.
Despite the fact that US government continue to experiment with the concept of creating its own central bank digital currency, Bank of America thinks such a product is “inevitable.” Moreover, analysts from a major financial organization believe stablecoins will continue to thrive and play a significant part in the monetary system.
CBDCs are a developing trend among central banks, with many announcing intentions to launch such products. Few countries have digital versions of their national currencies yet. However, the United States has always looked to lag behind, with Fed Chair Jerome Powell arguing that the country must do it well rather than first.
Furthermore, the world’s greatest economy feels that the Chinese approach will not operate within its boundaries. Nonetheless, several publications say that the US is making progress in determining how to create a CBDC.
According to Bank of America, such a product will be available in the United States between 2025 and 2030. Bloomberg said that CBDCs “are an inevitable evolution of today’s electronic currencies,” citing bank analysts Alkesh Shah and Andrew Moss.
Last week, the Federal Reserve released a paper that analyzed the benefits and drawbacks of a central bank digital currency. According to the report, it might lead to rapid settlements and lower transaction costs. CBDCs, on the other hand, may be detrimental to people’s privacy because governments can monitor and regulate their issuance and transactions.
Stablecoins are an important aspect of the cryptocurrency business, as seen by their recent expansion to a multi-billion dollar market share. There are now two such assets among the top five biggest cryptocurrencies by market cap.
Bank of America analysts anticipate that this tendency would further intensify in the coming years, particularly if the US fails to implement its CBDC.
The note concluded:
“We expect stablecoin adoption and use for payments to increase significantly over the next several years as financial institutions explore digital asset custody and trading solutions and as payments companies incorporate blockchain technology into their platforms.”
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