Connect with us

Hi, what are you looking for?


Bank of America: CBDC Adoption Grows Globally, but Digital Dollar Not Imminent

Source: iStock/E_Y_E

The United States is working on a digital dollar but is unlikely to actually launch one anytime soon, according to Bank of America.

In a Monday report, analysts led by Alkesh Shah said that central banks for 67% of countries are exploring central bank digital currencies (CBDCs), which represent 98% of global gross-domestic product. Among them, 33% are already in advanced development stages.

“The Federal Reserve (Fed) continues to pilot CBDCs but has not committed to a CBDC and will not issue one without executive branch and Congressional support,” wrote the analysts.

CBDCs are digital currencies issued directly by a country’s central bank using a centralized ledger, operating as tokenized versions of its existing fiat currency.

As with crypto at large, American political support for CBDCs has fallen down partisan lines – but in reverse. While Democrats have defended them for their potential to bolster the global supremacy of the U.S. dollar, both House and Senate Republicans remain hostile, deeming them a tool of the “surveillance state.”

The Federal Reserve’s commentary on CBDCs thus far has been fairly neutral. Vice-chair for Supervision Michael Barr said last month that the central bank was in talks with experts on how to build the best infrastructure for a sovereign-backed digital dollar, but that no decision on whether to issue one had been made.

Pros and Cons of CBDCs

Bank of America said that the benefits and risks of CBDCs depend on their design and issuance. Potential benefits include more efficient cross-border and domestic payments, financial inclusion, and better implementation of monetary policy.

“They may also drive competition with bank deposits, more frequent bank runs, loss of monetary sovereignty, and tensions among countries globally,” the bank warned.

The bank still believes in the potential of CBDCs to “revolutionize global financial systems” and expects central banks to drive crypto innovation by “leveraging the private sector and beneficiaries to emerge across all phases of CBDC implementation.”

Multiple surveys have shown strong skepticism of CBDCs among citizens and investors in western countries. A survey by WealthRocket in June, for example, found that 39% of 1500 polled Canadians held concerns about losing control of their finances due to CBDCs.

Another by the CFA Institute published in July found that only 31% of American investment professionals supported CBDCs, versus 70% of those in China. 50% of critics said their top concern was privacy, with another 40% believing the technology simply lacked a use case.

The post Bank of America: CBDC Adoption Grows Globally, but Digital Dollar Not Imminent appeared first on Cryptonews.

You May Also Like


Fisker (NYSE: FSR) stock price has been one of the best-performing electric vehicle (EV) stocks this week even as Tesla slumped. The shares jumped...


Newmont (NYSE: NEM) reported mixed financial results even as the price of gold approached its all-time high. In all, the company’s earnings per share...


The Fox Corporation (NASDAQ: FOX) stock price has been under pressure as investors come to terms with the abrupt firing of Tucker Carlson. The...


NatWest (LON: NWG) share price rose sharply, helped by the strong results from Barclays. The stock jumped to a high of 274.8p, which was...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the-company.

Copyright © 2023