BOA "Digital Dollar to Be Issued Between 2025 and 2030"

[Photo by Reuters-Yonhap News]

[Asia Economy Reporter Park Byung-hee] Bank of America (BOA) predicted that a digital dollar will be issued between 2025 and 2030, Bloomberg reported on the 24th (local time).

In a report released that day, BOA stated that the evolution of electronic currency today is an inevitable trend and anticipated the issuance of a digital dollar.

The U.S. central bank, the Federal Reserve (Fed), released its first CBDC report titled "Money and Payments: The U.S. Dollar in the Age of Digital Transformation" on the 20th. The Fed listed the advantages and disadvantages of a digital dollar in the report but did not reach a conclusion on whether to issue it. Instead, it sought public opinion by posing 22 open questions. It also stated that without support from the White House and Congress, it would not advance discussions on issuing a digital dollar.

BOA interpreted the Fed's cautious stance on issuing a digital dollar but viewed the issuance as inevitable.

BOA also forecasted an increase in privately issued digital currencies.

BOA predicted that even without a digital dollar, the use of stablecoins will significantly increase in the near future. Stablecoins refer to digital currencies issued by private companies that are pegged to the U.S. dollar or other fiat currencies to reduce price volatility.

BOA stated that as more financial institutions custody and trade digital assets and as payment service companies combining blockchain increase, the adoption of stablecoins in payment and other areas will substantially rise within a few years.

This content was produced with the assistance of AI translation services.