CBDCs and Stablecoins Have Potential to Revolutionize Global Financial Systems, Says Bank of America

In a research report released today, Bank of America said that digital currencies, such as central bank digital currencies (CBDCs) and stablecoins, could change the future of money and payment.

"CBDCs do not change the definition of money, but will likely change how and when value is transferred over the next 15 years. CBDCs have the potential to revolutionize global financial systems and may be the most significant technological advancement in the history of money." The report said.

Meanwhile, the report also stated that CBDCs had risks. They may drive competition with bank deposits, and could lead to a loss of monetary sovereignty and inequality among countries globally.