Bank of America (BofA), the second-largest bank in the US, has said in a research paper shared yesterday central bank digital currencies are “a much more efficient payment system than cash,” CoinDesk has reported.
According to the banking institution, CBDCs could end up “replacing cash entirely in the (distant) future.”
In particular, the publication of the report coincides with the increased interest of central banks in this type of assets. Notably, according to a report published by Bison Trails, 80% of central banks around the world are studying the potential uses of CBDCs, while 40% are already testing the currencies in real-world situations.
The BofA has concluded the adoption of CBDCs was “inevitable” as cash is used less and less. Furthermore, the bank believes central banks that do not launch their own digital currencies could lose global influence.
