Bank of America’s analysts released a report, where they said that Central Bank Digital Currencies are an unavoidable advancement of the existing digital assets.
As per a news article by Bloomberg, the experts said that the US digital dollar will be different from other digital assets. The main difference is that it would be controlled by the U.S. central bank. BofA mentioned that being controlled by the Federal Reserve and not by a commercial bank, the digital dollar wouldn’t have risks related to credit or liquidity.
The institution believes that the currency would be launched between 2025 and 2030. At the same time, the use of digital currencies released by the private sector will likely expand, they assumed. The team expects stablecoin adoption and their use as a payments method to increase in the coming few years. They emphasized that financial establishments study digital asset possibilities with payments services providers including blockchain tech into their protocols.
Analysts led by crypto and digital asset Strategists, Alkesh Shah and Andrew Moss said that a CBDC would preserve the dollar's role in the world as the reserve asset. Also, it would make international payments more efficient and boost financial involvement.
Recently, the Fed issued a research paper, presenting the advantages and risks of a U.S CBDC. The paper said that they would move forward getting approval from Congress, the government, and the public.