Bank of America has recently released a report stating that although there is a lot of advancement being made in Central Bank Digital Currency (CBDC) technology, the United States is unlikely to be getting it anytime soon. The report findings suggested that the majority of countries in the world, equating to 67 percent, are looking to create their own digital currencies with 33 percent of them already in the advanced stages of development. Benefits of a CBDC, according to the report, include a more efficient and cost effective payment system, stronger monetary policy implementation, and potentially greater financial inclusions. A potential issue, however, is that these currencies could create competition with traditional banking systems, which could lead to more frequent bank runs and insecurity amongst different countries. In spite of this, Bank of America still believes that CBDCs have the potential to revolutionize global financial systems. An example of this is the Swiss National Bank working with the SIX Digital Exchange and six other commercial banks on a project that would potentially involve related parties.
Sophie Young
- 2023-11-15
Bank of America's Report on Central Bank Digital Currency
