Bank of America analyst Alkesh Shah says central bank digital currencies and stablecoins will define money in the future.
Central banks around the world are starting to pay attention to the benefits of CBDCs, which offer higher efficiency and lower cost.
More:
- Central bank digital currencies and stablecoins mark the natural evolution of money.
- For instance, the Bank for International Settlements (BIS) is exploring cross-border settlement and trading involving CBDCs.
- CBDCs could potentially "revolutionize global financial systems and may be the most significant technological advancement in the history of money," according to a BofA analyst.
- The challenge with digital currencies is that they can drive up the competition with bank deposits and cause the loss of monetary sovereignty.
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