Bank of America Calls CBDC “The Future of Money and Payments”
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One of the largest US banks, Bank of America (BofA), issued studyin which he stated that the digital currencies of central banks (Central Bank Digital Currency – CBDC) are a natural evolution of the monetary and payment systems.
“CBDCs do not change the definition of money, but are likely to change how transfers are made in the next few years,” BofA economists wrote. “Central bank digital currencies have the potential to revolutionize the global financial system, becoming the most significant technological achievement in the history of money.” “.
The release and operation of CBDCs take place using blockchain technology. However, CBDCs are issued by a specific issuer, i.e. the Central Bank. Thus, they can be fully controlled by the authorities, unlike cryptocurrencies, which are issued in a decentralized manner, and the exchange rate largely depends on the current market conditions.
In some countries, CBDCs have already begun to be issued, for example in Nigeria. In others, including Great Britainwhile there are only such plans. In turn, the Central Bank India contrasts CBDCs with conventional cryptocurrencies, believing that “private cryptocurrencies such as bitcoin and other non-government crypto assets could cause a financial crisis”, as opposed to the digital currency of central banks.
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