According to the report, the bank believes that CBDCs are a question of âwhenâ, not âifâ.
Governments and regulators globally have stepped up efforts to limit usage of digital assets, as adoption and use have increased. Some of the key issues that governments and regulators appear to be focused on revolve around AML/KYC, mitigating potential bank runs, taxation and liability. A central bank-issued/managed CBDC would address these issues, while maintaining central bank monetary policy controlâ according to the report.
Bank of America has also kept their eye on non-fungible tokens (NFTs). While they do credit the current methods of utilization for art and gaming in the research piece, they also recognize other potential use-cases. âNFTs can be used instead of deeds, titles or anything currently needed to demonstrate ownership â and all without a middleman charging a fee,â the company report stated.
Referring to the focus on NFTs in the report, Anto Paroian, chief operating officer at crypto/digital assets hedge fund ARK36, said, âThe most interesting thing to note is that the [report] explicitly mentions NFTs as one of the current drivers of the digital asset market.â He continued: