• Home
    • Bitcoin News
    • Ethereum News
    • Scam News
    • Regulation News
    • Mining News
    • CBDC News
    • NFT News
  • Blockchain News
    • Web3.0
    • Metaverse
    • DeFi
  • New to Crypto?
  • Press Release
    • Sponsored
    • Advertise at Todayq News
Facebook Twitter Instagram
Todayq News
  • News
    • Bitcoin
    • Ethereum
    • Scam
    • Regulation
    • CBDC
    • Mining
    • NFT
  • Blockchain
    • Web3.0
    • Metaverse
    • DeFi
  • New to Crypto
  • Press Release
    • Sponsored
    • Advertise at Todayq News
Crypto Trading Experts
Twitter Facebook Instagram LinkedIn
Todayq News
News

Bank of America advocates for CBDCs and stablecoins in its report

By Samvidha Sharma18 January 2023, 02:04 PM
Bank of America advocates for CBDCs and stablecoins in its report

The crypto industry is growing with every passing day, which has attracted major institutions. Many institutions are enthusiastically exploring the potential future of digital assets and the possibility of their adoption in the coming times. One such enthusiastic institution is the Bank of America (BoA). 

Sources reveal that Alkesh Shah, an analyst of the bank, commented that the central bank digital currencies (CBDCs) and stablecoins as a natural evolution of money and a significant factor in how the money will be defined in the future. 

According to the report, the analysts’ research note stressed that CBDCs could “revolutionize global financial systems and might be the most significant technological advancement in the history of money.”

The report also specified that digital assets are going to change the definition of money but would bring alterations. In their words:

“CBDCs do not change the definition of money, but will likely change how and when value is transferred over the next 15 years.”

In addition, the bank projects that financial authorities and central banks in developed and developing countries will recognize the potential of higher efficiency and lower costs offered by CBDCs. However, the team admits that this form of currency possesses certain risks that could still present the risk of driving competition with bank deposits, a loss of monetary sovereignty, as well as fostering inequality among nations. 

Simultaneously, the bank is not very optimistic that all countries would introduce CBDCs within the next decade but still highlights that central banks should keep up with technological advances or else there is a chance they would “risk irrelevance over the longer term.”

The analysts’ note in the report concludes that national authorities and central banks worldwide are expected to lean on the private sector to drive innovation in digital assets such as CBDCs and stablecoins. 

BoA is one of those institutions that has carried a positive stance on crypto and digital assets. In May, Brian Moynihan, the CEO of the BoA, said that the bank had “hundreds of patents on blockchain as a process and as a tool and as a technology,” but that regulation was preventing any progress of banks in the crypto sector.

In August, BoA also appreciated the upcoming update of Ethereum. It stated that the switch from a proof of work (PoW) consensus mechanism to proof of stake (PoS) was expected in mid-September. The transition from a PoW consensus mechanism to PoS appears to be imminent. 

The bank had also claimed that PoS lowers entry barriers for investors to create income as network validators, decreases Ethereum’s energy usage by over 99 percent, and modifies ETH’s supply/demand dynamics.

Several banks have enthusiastically looked up to the idea of digital assets for cross-border transactions. For example, J.P. Morgan, a multinational bank in collaboration with the central bank of Singapore, participated in its first-ever decentralized finance (DeFi) transaction. According to the Monetary Authority of Singapore (MAS), the transaction was one of many to announce the commencement of Project Guardian.

According to MAS, the pilot program aims to identify the potential use cases of DeFi applications in the financial markets. Additionally, it was an asset tokenization and international transfer experiment.

Bank CBDC Stablecoin USA
Share. Facebook Twitter LinkedIn Telegram WhatsApp Reddit
Must Read

Crypto exit scams surpass DeFi exploits in May; over $45 million losses compared to $17 million

Central Banks of Hong Kong and UAE to work on Crypto regulation and fintech development

US debt ceiling bill removes the Crypto tax; receives bipartisan support

Instagram
Recently CryptoQuant, an on-chain analytics firm, published insights on Bitcoin’s supply and investor sentiment for May 2023. The firm revealed that the exchange reserves have significantly declined as the investor’s holding sentiment has continued to grow.
In a significant development for the world’s leading cryptocurrency, Bitcoin, long-term holders (LTHs) have reached an all-time high, now holding a staggering 78% of the total circulating supply.
In a recent development, Bitcoin miners have been observed moving their assets, which could potentially trigger further selling pressure if these assets are liquidated.
According to a recent report, Turkey recorded the highest growth in crypto ownership from 2021 to 2022. Reportedly the crypto ownership in Turkey has marked a splendid 27.1% increase from July-September 2021 to July-September 2022.
Company
  • About Us
  • Careers
  • Terms & Conditions
  • Privacy Policy
Products
  • Crypto Signals
  • Todayq News
  • Koinpr
  • Todayq Education
Support

Advertise

Email: news@todayq.com

Connect With Us
  • Twitter
  • Facebook
  • Instagram
  • LinkedIn
All rights reserved by Todayq Technologies Private Limited

Type above and press Enter to search. Press Esc to cancel.