Central Bank Digital Currencies (CBDCs) and Stablecoins Drive the Progressive Development of the Payments Industry, Bank of America's New Analyst Note Says. Analyst Alkesh Shah wrote that government cryptocurrencies do not change the very definition of money, but over the next 15 years they can change the process of payments and settlements, making it much faster and more economical.
The benefits of CBDCs depend on their design and issuance nuances, with Shah believing that central banks in developed countries will focus on making payments more efficient, and in developing countries on increasing citizens' access to financial services.. The analysts’ note states that for all their advantages, government stablecoins are not without risks.. CBDCs can seriously compete with bank deposits, contribute to the loss of monetary sovereignty, and exacerbate inequality between countries.
Alkesh Shah believes that the central banks of many states may not decide to launch their own digital currency for another ten years. But they will all be ready for innovation and technological progress with one goal: not to be left behind by financial regulators from other countries.. To do this, central banks will inevitably have to cooperate with private business, the bank's analysts conclude.
Last year, Bank of America officials said that cryptocurrencies could also improve the efficiency of international payments, but the financial conglomerate does not intend to introduce them into its operations due to the strict regulation of the industry.