A recent note published by the Bank of America postulates the idea that the adoption of central bank digital currencies and stablecoins is inevitable. Bloomberg reporter dissected the report further and published a detailed article on the matter. According to the article, the report issued the idea that CBDCs are going to be a liability issuance from the Federal Reserve.
Meanwhile, the report suggested that cryptocurrencies and altcoins are different since they are liability issues from a commercial bank or financial institution. The report used the feedback from two recognized analysts from BoA named Alkesh Shah and Andrew Moss. The report suggests that the United States government is on board with the CBDC plans.
The Bloomberg article about the BoA report recently highlighted some important points about the subject matter. BoA analysts claimed that more and more corporations and retailers would adopt stablecoins for everyday payments over the next few years. Furthermore, corporations will start looking into blockchain technology to make payment options more viable and faster.
The report also highlighted that Federal Reserve has already published its data projections about the pros and cons of CBDC adoption. The report noted that the digital financial infrastructure has started to evolve, and it will make global financial transactions more fluid and easier.
Federal Reserve recently issued a new report about the CBDC, where it brought the downsides of the CBDCs adoption to the public. The Fed expressed concerns about the increase in financial crimes due to the aid and interest of threat actors in the subject. Furthermore, the Fed also talked about the lack of privacy of the citizens who use CBDCs for payments.
The Bahamas, a Caribbean archipelago, became the first country in 2020 to issue the first-ever CBDC called the Sand Dollar. Meanwhile, China is planning to issue its digital Yuan to the public during the next Olympics event. Likewise, the central bank of Sweden has recently announced the issuance of the pilot phase of e-krona.