The US reportedly seems to be deciding to begin the work for building its own central bank digital currency (CBDC), as revealed by the Bank of America.

Specifically, Bank of America crypto strategists Andrew Moss and Alkesh Shah reportedly disclosed via a note created on January 24th that CBDCs “is an inevitable evolution of today’s electronic currencies”. 

“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.”

Meanwhile, a report written on January 20th, which goes by the name “Money and Payments: The U.S. Dollar in the Age of Digital Transformation”, published by the Federal Reserve Bank (FRB) reportedly runs careful assessments of the pros and cons associated with the scenario of the U.S. adopting a CBDC.

It reportedly took into consideration if a CBDC possesses the potential ability to “improve the safe and effective domestic payments system” for households and businesses as “the payments system continues to evolve,” possibly resulting in “faster payment options between countries.”

In the meantime, Shah and Moss reportedly claimed that virtual currencies utilization issued by private firms has the likelihood of developing. 

At the moment, the liability for current forms of digital currency such as online bank accounts or payment apps is reportedly in the ownership of private establishments, nominally central banks. 

However, a CBDC would come with differences in this area, due to the fact that it would be the liability of a central bank such as the Federal Reserve, wrote the FRB in a statement about the report.