Bank of America: CBDC is coming, but digital dollar is unlikely in the short term

Bank of America (BAC) said in a report on Monday that a CBDC is coming, but a digital dollar is unlikely in the short term. The report stated that central banks representing 67% of the world’s countries and 98% of global GDP are exploring CBDC, and 33% of them have entered the advanced stage. Analysts led by Alkesh Shah wrote: “The Federal Reserve continues to pilot CBDC but has not yet committed to launching a CBDC and will not issue a CBDC without support from the executive branch and Congress.” The report stated: “The benefits and risks of CBDC depend on the design and issuance method, but we expect CBDC to provide a more efficient and lower-cost payment system for cross-border and domestic payments, as a tool for monetary policy implementation and improving financial inclusion. " Still, "they could also lead to competition for bank deposits, more frequent bank runs, a loss of monetary sovereignty and tensions between countries around the world," the bank added. (CoinDesk)