Terence Zimwara reports in bitcoin.com that "a new Bank of America (BOA) research study has found that both central bank digital currencies (CBDCs) and private digital currencies hold “a lot of potential” for increasing financial inclusion in developing countries. In the report, the bank also argues that such “digital currencies could reduce transaction costs and allow more economic activities in emerging market economies.
Still, the study findings show that while digital currencies are likely to “boost economic growth” in developing countries, their adoption will carry some risk. In addition, the study also finds that the rise of digital currencies “could lead to inflation and dollarization.
Meanwhile, a separate report quotes David Hauner, the BOA’s head of emerging market cross-asset strategy and economics for EMEA, explaining why digital currencies could be pivotal in emerging market countries where more than 50% of adults lack a bank account. Digital currencies have the potential to address many practical constraints on financial services in poor countries.
The report also lists the reduction of cross-border payment costs as well as the reduction of corruption and other illegal activities as some of the constraints that can be addressed by digital currencies.
Despite these risks, Hauner suggests that more central banks are “likely to issue a general purpose CBDC in the next three years.” Several more countries are likely to join the race as more studies show that digital currency benefits outweigh the risks."
Looks like banks, governments and other institutions are beginning to realize what crypto could do for ordinary people. Whether central bank issued official version of the fiat is beneficial is debatable, one benefit would be people will be forced to use the digital version of the fiat and get used to using digital currency in everyday life. After a while they are more likely to try other cryptos and reap the benefits of non-governmental crypto assets making the crypto mass adoption inevitable.
Poorman's Bitcoin - Free Bitcoin - Related Links:
@successforall/crypto-tab-s-promo-competition-2021-usd-17-000-in-bitcoin-prizes-to-win
How to build your own bitcoin mining pool for free:
@successforall/poor-man-s-bitcoin-why-i-use-crypto-tab-browser-as-my-free-bitcoin-mining-pool
Grab Your Free Tamil Charity Coins - Redefining Charity With Hive Crypto & Blockchain - Rewarding Donors - Empowering Beneficiaries
@successforall/grab-your-free-tamil-charity-coins-redefining-charity-with-hive-crypto-and-blockchain-rewarding-donors-empowering-beneficiaries