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Bank of America Says Stablecoin Adoption And CBDC Is ‘Inevitable’

Industry News

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According to Bank of America, the United States will finally go forward with creating its own central bank digital currency (CBDC).

Bank of America crypto strategists Andrew Moss and Alkesh Shah stated in a Jan. 24 note that CBDCs “are an inevitable progression of today’s electronic currencies.”

“We anticipate stablecoin acceptance and usage for payments to grow dramatically over the next several years as financial institutions investigate digital asset custody and trading solutions, and as payments businesses integrate blockchain technology into their platforms,” the analysts stated.

According to Shah and Moss, the use of digital currencies created by private enterprises is likely to expand. Private businesses such as commercial banks currently have liability for current forms of digital money such as online bank accounts or payment applications.

A CBDC, on the other hand, would be different in this regard since it would be a central bank’s liability, such as the Federal Reserve, according to the statement of the FRB.

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