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Bank of America experts believe that digital currencies of central banks will be able to radically change the international financial system and become the most important technological achievement in the history of money.
In a recent analytical note from the Bank of AmericaCentral bank digital currencies (CBDCs) and stablecoins are said to be driving the progressive development of the payments industry. 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 nuancesissuance, while Shah believes 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 manystates may not decide to launch their own digital currency for another ten years. But all of them will 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 management saidthat cryptocurrencies can also increase 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.