Major institutions, such as the Bank of America, are increasingly examining the possible future of digital assets and the likelihood of their eventual acceptance as the cryptocurrency industry expands.
Will Canny of CoinDesk stated on January 17 that BoA experts led by Alkesh Shah have identified central bank digital currencies (CBDCs) and stablecoins as the natural development of money and a crucial component in how the money will be defined in the future.
According to the publication, the research note of the experts emphasised that CBDCs might “revolutionize global financial institutions and may be the most important technology innovation in the history of money.”
According to their specifications: “Over the next 15 years, CBDCs will certainly alter how and when value is exchanged, but not the meaning of money.”
Nevertheless, the team acknowledges that this kind of currency might still pose the danger of increasing rivalry with bank deposits, a loss of monetary sovereignty, and the promotion of inequity across states.
The study adds that governments and central banks throughout the globe will likely rely on the private sector to promote innovation in the realm of digital assets such as CBDCs and stablecoins.
Finbold announced in November 2022 that the Bank for International Settlements (BIS) intended to investigate cross-border settlement and trading with CBDCs utilizing decentralized finance (DeFi) protocols.
Brian Moynihan, CEO of the Bank of America, said in May 2022 that the BoA had “hundreds of patents on blockchain as a method, a tool, and a technology,” but that legislation was preventing banks from making any headway in the cryptocurrency business.
Earlier in April, BoA’s chief investment strategist Michael Hartnett warned that the deterioration of the macroeconomic environment could trigger a recession shock in the United States, causing cash, volatility, commodities, and cryptocurrencies to outperform bonds and stocks.