Last year, Bank of America said that crypto holds intrinsic value. The bank is one of the few traditional financial firms in the U.S. backing investment in crypto and digital currencies. Bank of America’s crypto analysts recently released a report on the potential of central bank digital currencies (CBDC) and believes that CBDC will revolutionize the global financial systems.
“Digital currencies appear inevitable,” the report concludes. BofA said CBDCs could displace stablecoins, and that their adoption will increase financial efficiency and transparency. But it also noted that they might drive competition with bank deposits, which could lead to a loss of monetary sovereignty and inequality among countries globally. Presently, more than 100 central banks, including those of the United States and China, are exploring CBDCs, almost a triple increase from May 2020 when there were only 35.