CHARLOTTE, N.C.—Despite the “headwinds” encountered by cryptocurrency this past year, Bank of America is predicting digital assets will change the way the country interacts with money and payments.
In a research report, the bank’s crypto analysts described CBDCs and stablecoins as “the natural evolution of money and payments,” The DalesReport.com reported.
The bank’s analysts went on to add that central bank digital currencies have “the potential to revolutionize global financial systems and may be the most significant technological breakthrough in the history of money,” according to the report.
“The pliability and anti-money laundering benefits of CBDCs are well theorized and will depend on their design and issuance. However, these developments are not without risk,” DalesReport.com stated. “According to the (report), CBDCs could still pose risks such as fueling competition with bank deposits, leading to a loss of monetary sovereignty, and inequality between countries globally. It may also hurt the financially disenfranchised which tend to use cash payments at a greater frequency than the general public.”
Not Optimistic
Bank of America added, however, is not optimistic that every country will issue a CBDC in the next few years, though it hopes that central banks will keep up with technological advances, as otherwise they “risk irrelevance to long term,” the report added.
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