Interest in digital currencies like CBDCs and stablecoins has grown significantly in recent months. This trend, far from running out of steam, could strengthen and become widespread on a global scale in the months to come. That’s basically what many experts tend to think. Conclusions based on the certain enthusiasm of several countries for these digital assets.
Essential cryptos for the global financial system?
The role of banks in the adoption of digital currencies is still debated. But Bank of America, one of the largest banking groups in the United States, seems to provide a clear answer to the question. According to her, digital currencies are unquestionably the future of the current global financial system.
“Digital currencies seem inevitable” because they represent, according to the bank, “a natural evolution of monetary and payment systems”. Three reasons explain, according to the financial institution, this transition.
The first is that the global adoption of digital currencies would have a direct impact on international payment and funds transfer methods. These would see their effectiveness significantly improved.
Second, the move to digital currencies is driven by the fact that its implementation would increase financial inclusion. A dynamic that is already at the heart of the current financial system, banking services being essential to the good social integration of people.
Finally, the third reason relates to the sovereign role of money for States. With the meteoric rise of the mostly decentralized crypto industry, more and more governments fear losing control over the currency. The integration of digital currencies into the financial system would therefore be a way for these countries to limit this risk.
This explains, according to the report, the interest of 114 central banks, representing 58% of countries across and more than 95% of global GDP, for digital currencies. They are indeed studying the different possibilities offered to them by the CBDCs.
The private sector, big winner of this announced change?
If the bank seems convinced of the global adoption of digital currencies, it is also certain of the determining role of the private sector in this financial revolution. The reason is simple: neither the States nor the banks themselves have the necessary expertise for this purpose.
As a result, the integration of digital currencies into the financial system could not take place without the active contribution of private investors. According to the bank, an increased trend of innovation in the crypto industry should be observed, with companies in the sector winning markets in exchange for their expertise. The risks of financial system burnout still need to be controlled in advance.
The conclusions of the American bank concerning the rise of digital currencies are not far from those of the World Economic Forum (WEF). The organization also predicted the implementation and success of these.
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