According to a recent note from Bank of America analysts, a CBDC would be distinct from other digital currencies now available since it would be the liability of the Federal Reserve instead of a commercial bank.
According to a Bloomberg report, Bank of America crypto strategists Andrew Moss and Alkesh Shah stated in a Jan. 24 note that CBDCs “are an inevitable evolution of today’s electronic currencies.”
Meanwhile, the Federal Reserve Bank (FRB) published a report on Jan. 20 titled “Money and Payments: The US Dollar in the Age of Digital Transformation” that assessed the merits and drawbacks of the US potentially adopting a CBDC.
It assessed whether a CBDC might potentially “enhance the secure and effective domestic payments system” for individuals and companies as “the payments system evolves,” perhaps leading to “faster payment choices across nations.”
Meanwhile, Shah and Moss predicted that the use of digital currencies generated by private enterprises would increase. Currently, private businesses, such as commercial banks, have accountability for current types of digital money, such as online bank accounts or payment applications.
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