Bank of America Proclaims CBDCs as a New Form of Money 


Like cryptocurrency, central bank digital currencies (CBDCs) are considered digital currency and are issued by a central bank. Many countries have either adopted or are developing CBDCs in order to enhance the efficiency of payments, as well as decrease costs. This recent article by Coindesk features the latest report by Bank of America, where it says that central banks and governments will be at the forefront of driving the digital asset revolution.  

According to research from Bank of America, “CBDCs and stablecoins are the natural evolution of money and payments.” Alkesh Shah, lead analyst for the Crypto Research Team at Bank of America said that central bank digital currencies have, “the potential to revolutionize global financial systems.” He also believes that CBDCs could be the most important technological advancement in the history of money. 

CBDCs use blockchain technology, or more specifically, distributed ledger technology or (DLT). This type of technology enables governments to retain control of the money supply. Plus, a central entity will determine which financial entity will oversee the distributed ledger. Bank of America believes that developed countries will focus their efforts on the efficiency of payments, while countries with developing economies will hone in on financial inclusion.

We’ve previously covered the inevitable rise and adoption of CBDCs among sovereign nations. 

“When one thinks about the role of central banks, one part is to help control the growth in the supply of money,” said Steve Murphy, Director of Commercial Payments at Mercator Advisory Group. “That is done by measuring M1 and M2. M1 is fed by the U.S. Treasury, which creates coins, although not much needed any more, and issues paper money. In CBDCs, the Fed would take the place of the U.S. Treasury for retail currency, and therefore be able to more accurately measure M1.”  

“The larger question becomes who controls the accounts, both retail and wholesale, and how does that system operate while maintaining privacy,” he said. “These are still ongoing debates in the U.S., but one would expect that CBDCs in some form are inevitable.” 



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