Cryptocurrencies continues to grow in use and popularity. Bitcoin (BTC) It continues to be discussed that cryptocurrencies cannot be a payment method.
BTC Those who state that cryptos cannot be a payment method, such as a central bank digital currency (CBDC) supports its release.
Taking this dual Bank of America (BoF) In its latest report, the central bank stated that digital currencies have the potential to revolutionize global financial systems.
CBDC and stablecoins BoF analysts led by Alkesh Shah, who said that it is the natural evolution of money and payments, made the following statements in the report:
“CBDCs often use blockchain technology to increase efficiency and reduce costs, while stablecoins are a type of cryptocurrency whose value is pegged to another asset such as the US dollar or gold.
In this context, CBDCs do not change the definition of money. But it will likely change how and when value is transferred over the next 15 years.
Also, CBDCs and stablecoins have the potential to revolutionize global financial systems and could be the most important technological breakthrough in the history of money.”
Stating that the benefits and risks of CBDCs depend on their design and the way they are issued, analysts said that central banks should focus on the efficiency of payments and financial inclusion during their CBDC work.
Stating that CBDCs have risks as well as benefits, BoF stated that these risks include the loss of monetary sovereignty and the potential to cause inequality between countries globally.
Finally, the BoF CBDC He added that it may take more than ten years for him to export.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!