"Oh that's why every country is racing to launch its own CBDC."
Bank of America (BofA) shared its views on central bank digital currencies (CBDCs) and stablecoins, saying payments using both digital currencies will grow in the future.
Explained further, CBDC is money but the way and transfer of value may be different in the next 15 years while CBDC is also found to have the potential to develop a global financial system.
In general, CBDCs apply blockchain technology to increase efficiency and reduce costs while stablecoins are a type of cryptocurrency whose value is backed by other assets such as the United States (US) dollar or gold.
Although Bank of America is still unable to identify the benefits and risks of CBDC, they believe that CBDC is capable of speeding up the payment process in addition to spurring economic growth.
However, it should be noted that CBDC also has its own risks, where it may encourage competition with bank deposits and system inequality in each country that implements CBDC.
Even so, central banks and governments are expected to continue to use CBDC in the long term to drive digital asset innovation with input from the private sector.
