Bank of America Believes Dollar Hegemony Will Continue Thanks to CBDCs
Central bank digital currencies (CBDCs) will maintain the status of the US dollar as the world’s reserve currency and expand access to financial services, Bloomberg has reported citing Bank of America strategists.
According to their estimates, the release of the digital dollar will take place between 2025 and 2030.
The bank experts have stressed the digital dollar will not have liquidity problems, as well as the need to have a credit rating.
CBDCs as “the inevitable evolution of modern electronic currencies” will improve cross-border payments, increase financial inclusion and expand the number of digital currency use cases.
The specialists have noted before its release, it is necessary to resolve issues of privacy protection, the effectiveness of monetary policy, the possibility of transactions and personal identification.
In the absence of a digital dollar, the role of stablecoins for payments will increase over the next few years.
