Bank of America Archives - Crypto Insider https://cryptoinsider.asia/post_tag/bank-of-america/ Crypto and Blockchain News Tue, 17 Jan 2023 14:05:02 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://cryptoinsider.asia/wp-content/uploads/2021/11/cryptocurrency-icon.png Bank of America Archives - Crypto Insider https://cryptoinsider.asia/post_tag/bank-of-america/ 32 32 199368904 Bank of America Says CBDCs Are the Future of Money and Payments https://cryptoinsider.asia/bank-of-america-says-cbdcs-are-the-future-of-money-and-payments/ Tue, 17 Jan 2023 14:05:02 +0000 https://cryptoinsider.asia/bank-of-america-says-cbdcs-are-the-future-of-money-and-payments @ Crypto Insider

Central bank digital currencies have the potential to revolutionize global financial systems, the report said.…

The post Bank of America Says CBDCs Are the Future of Money and Payments appeared first on Crypto Insider.

]]> @ Crypto Insider

Central bank digital currencies have the potential to revolutionize global financial systems, the report said.

Digital currencies, such as central bank digital currencies (CBDCs) and stablecoins, are the natural evolution of money and payments, Bank of America (BAC) said in a research report on Tuesday.

“CBDCs do not change the definition of money, but will likely change how and when value is transferred over the next 15 years,” analysts led by Alkesh Shah wrote, adding that central bank digital currencies have “the potential to revolutionize global financial systems and may be the most significant technological advancement in the history of money.”

CBDCs typically use blockchain technology to increase efficiency and lower costs. A stablecoin is a type of cryptocurrency whose value is pegged to another asset, such as the U.S. dollar or gold.

The benefits and risks of CBDCs depend on their design and issuance, but Bank of America expects central banks in developed and developing economies to focus on payments efficiency and financial inclusion, respectively.

Still, CBDCs are not without their risks. They may drive competition with bank deposits, and could lead to a loss of monetary sovereignty and inequality among countries globally, the note said.

CBDC issuance may not happen for over a decade for some counties, but central banks are expected to “adopt technological advances or risk irrelevance over the longer term,” the note added.

Bank of America says central banks and governments are expected to drive digital asset innovation by leveraging the private sector.

The post Bank of America Says CBDCs Are the Future of Money and Payments appeared first on Crypto Insider.

]]> 4486 Bank of America Says Cryptocurrencies Continue to Act as Risk Assets https://cryptoinsider.asia/bank-of-america-says-cryptocurrencies-continue-to-act-as-risk-assets/ Mon, 26 Sep 2022 08:53:55 +0000 https://cryptoinsider.asia/bank-of-america-says-cryptocurrencies-continue-to-act-as-risk-assets @ Crypto Insider

Ether continues to slide as investors shift to a wait-and-see approach regarding future upgrades, the…

The post Bank of America Says Cryptocurrencies Continue to Act as Risk Assets appeared first on Crypto Insider.

]]> @ Crypto Insider

Ether continues to slide as investors shift to a wait-and-see approach regarding future upgrades, the bank said in a research report.

Digital assets continue to act as risk assets, falling as global interest rates rise, Bank of America (BAC) said in a research report Friday.

Still, positive signs of an eventual recovery include stablecoin inflows. Stablecoins are a type of cryptocurrency whose value is pegged to another asset, such as the U.S. dollar or gold.

Last week these inflows jumped to $490 million, 58% higher than the previous week, the report said, as “real world use cases like payments/remittances are adopted and real-world data providers like decentralized oracle networks increase functionality.”

The four largest stablecoins witnessed exchange net inflows for the third week in a row, the report said, noting that large Binance USD (BUSD) inflows/USD Coin (USDC) outflows could be the result of investors “preemptively rotating” into BUSD from USDC to avoid disruptions following Binance’s decision to auto convert some stablecoins into its own stablecoin.

Bank of America expects regulatory clarity to support decentralized finance adoption. DeFi is an umbrella term used for lending, trading and other financial activities carried out on a blockchain without the use of traditional intermediaries.

The jump in ether’s (ETH) price from mid-July to mid-August continues to reverse as investors digest that the Ethereum blockchain’s switch to proof-of-stake (PoS) does not fix scalability concerns or high fees, and these investors shift to a “wait-and-see approach regarding future upgrades,” the note said.

The transition from proof-of-work (PoW) to a more environmentally friendly proof-of-stake consensus mechanism is the first of five upgrades for the Ethereum blockchain, a process that was called the Merge.

The post Bank of America Says Cryptocurrencies Continue to Act as Risk Assets appeared first on Crypto Insider.

]]> 4030