According to Bank of America analysts, stablecoins and CBDCs “are an inevitable evolution of today’s electronic currencies.”
Bank of America analysts Andrew Moss and Alkesh Shah shared their opinions on the inevitable introduction of stablecoins and CBDCs in the United States. This is stated by Bloomberg with reference to the corresponding report.
The report says that the key difference between American CBDC and existing digital money will be the absence of credit or liquidity risks, as the Federal Reserve will act directly as the issuer. Also, the national digital currency will allow the US to:
- maintain the dollar’s status as the world’s reserve currency;
- improve cross-border payments;
- increase public access to financial services.
Besides, analysts expect an increase in the acceptance and use of stablecoins as a means of payment within a few years. This should be facilitated by developing the appropriate infrastructure of fintech institutions and payment systems — introducing technical solutions for the storage and trading of digital assets based on blockchain. Let us recall that a few days earlier, the Fed presented a discussion paper on the benefits and risks of the American CBDC, and the Federal Reserve Bank published a report examining the advantages and disadvantages of the potential CBDC implementation in the United States. The Fed has opened to the floor for public comment on this topic until May 20.
