Bank of America’s global crypto and digital asset specialists forecast that the U.S. could advance and introduce a central bank digital currency as early as 2025, BloombergQuint reported Tuesday.
CBDCs “are an inevitable evolution of today’s electronic currencies,” BofA strategists Alkesh Shah and Andrew Moss wrote in the report.
Both strategists forecast the use of stablecoins and other digital currencies from private entities will likely increase in the near term.
“We expect stablecoin adoption and use for payments to increase significantly over the next several years as financial institutions explore digital asset custody and trading solutions and as payments companies incorporate blockchain technology into their platforms,” they noted.
BloombergQuint cited sources that say the White House is preparing to issue as early as February a governmentwide strategy in the form of an executive order that would direct federal agencies to assess the opportunities and risks from digital assets.
According to people familiar with the matter, the draft EO outlines national security, economic and regulatory challenges posed by cryptocurrencies and would call for agencies to submit reports on such assets by the second half of 2022.
The Biden administration is also expected to assess the possibility of a CBDC but is likely to defer taking a firm stance on the matter as the Federal Reserve explores the pros and cons of a government-backed virtual currency.
The Fed issued a discussion paper outlining the potential benefits, risks and policy considerations for a CBDC and opened the document to a public comment period that will run through May 20.
On Jan. 27, Executive Mosaic’s Potomac Officers Club will bring together government and industry leaders to explore the future of cryptocurrency and potential national security implications. National Cyber Director Chris Inglis will deliver the keynote speech at POC’s Digital Currency and National Security Forum. Visit the POC Events page to sign up for this virtual event.