Bank of America: U.S. digital currency could maintain dollar dominance

In a report titled “US Central Bank Digital Currency: The First Step in a Long Journey,” Bank of America said that a central bank digital currency (CBDC) will be different from existing mass-oriented digital currencies because it Will be a liability of the Federal Reserve, which will mean the digital currency has no credit or liquidity risk. The United States will benefit from the issuance of a CBDC, as it has the potential to maintain the dollar’s ​​status as the world’s reserve currency. The report also said that a US CBDC is expected to be issued between 2025 and 2030, with potential benefits including maintaining the US dollar’s ​​status as the world’s reserve currency, improving cross-border payments (2Q21, the average remittance of $200 from the US) cost is 5.4% of transaction value), increasing financial inclusion (about 5% of U.S. households were unbanked in 2019), and leveraging the new use cases that digital currencies offer. (Decrypt)