They see the necessity of a digital dollar as it would differ from existing digital money available to the general public because it would be a liabi
They see the necessity of a digital dollar as it would differ from existing digital money available to the general public because it would be a liability of the central bank. This could mean that there would be no liquidity risks for the digital dollar.
If not a U.S. CBDC, stablecoins such as Tether or USD Coin, both pegged to the US Dollar, will “likely flourish” in the near future, the analysts predicted.
“We expect stablecoin adoption and use for payments to increase significantly over the next several years as financial institutions explore digital asset custody and trading solutions and as payments companies incorporate blockchain technology into their platforms,”
they wrote.
The timely arrival of opinions from crypto experts on the U.S. CBDC denotes that the country is doing the spadework in preparation for the launch.
BofA’s Pro-Crypto Moves
Bank of America has been showing a constructive outlook when it comes to crypto trials and experiments.
The bank launched crypto research in October 2021, amid “growing institutional interest.”
“This isn’t just Bitcoin anymore, this is digital assets and it’s creating a whole ecosystem of new companies, new opportunities, and new applications,”
Candace Browning, head of global research at BofA Securities told Bloomberg.
The research was launched along with the publication of a report that looked through various use cases of cryptos including tokens, applications powered by smart contracts, CBDCs, stablecoins and NFTs.
BofA has also kept its eye on non-fungible tokens (NFTs), recognizing their potential use cases. Anto Paroian, chief operating officer at crypto/digital assets hedge fund ARK36 told at the time,
“The most interesting thing to note is that the [report] explicitly mentions NFTs as one of the current drivers of the digital asset market.”
The bank also showed interest in metaverse, calling it a “massive opportunity“, resulting in widespread crypto adoption.
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