Digital currencies, CBDC and stablecoins are the natural evolution of money and payments, according to researchers at Bank of America (BofA). CoinDesk reports this, citing a report from the investment bank.
“CBDCs do not change the definition of money, but are likely to alter the ways value is transferred over the next 15 years,” the experts wrote.
In their view, central bank digital currencies could revolutionise the global financial systems and may become the most significant technological achievement in the history of money.
Researchers at BofA believe that monetary authorities in both developed and developing countries will focus on the efficiency of payments and their accessibility.
However, CBDCs could compete with bank deposits. This risks “losing monetary sovereignty” and deepening inequality between countries, the report says.
Some states will not issue such means of payment even in the next ten years. But central banks will have to “either pursue technological innovations or become irrelevant in the long term”.
Earlier, the US House of Representatives formed a subcommittee with a focus on digital assets.
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