Bank of America forecasts CBDC rollout will preserve the dollar’s dominance

The national digital currency (CBDC) will preserve the status of the U.S. dollar as the world’s reserve currency and broaden access to financial services. This was stated by Bank of America strategists, Bloomberg reports.

They estimate that the rollout of the digital dollar will occur between 2025 and 2030.

Experts stressed that the digital dollar would not face liquidity issues, nor require a credit rating.

CBDC as the “inevitable evolution of modern electronic currencies” will improve cross-border payments, increase financial inclusion, and broaden the range of use cases for the digital currency.

Experts noted that before its release, issues of privacy protection, the effectiveness of monetary policy, the ability to conduct transactions, and identity verification must be resolved.

In the absence of a digital dollar over the next few years, the role of stablecoins in payments will grow. Financial institutions are studying custody and trading solutions for digital assets, and payments companies are integrating blockchain into their platforms, the strategists explained. As an example, they cited the rising demand for Tether and USD Coin.

Bank of America noted that in China the CBDC has the “greatest potential for broad adoption and use in the coming years.”

In January, Fed presented a report on the findings of its CBDC study.

Earlier, the head of the U.S. central bank, Jerome Powell, noted that for the United States it is important not to be first to issue a CBDC, but to do so with the right approach.

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