Bank of America Says US CBDC Would Preserve Dollar’s Status as World’s Reserve Currency

Bank of America Says US CBDC Would Preserve Dollar’s Status as World’s Reserve Currency
A U.S. central bank digital currency (CBDC) would differ from the digital money currently available to the public because it would be a liability of the U.S. Federal Reserve, not a commercial bank, and so would have no credit or liquidity risk, Bank of America said in a report.Preserving the dollar’s status as the world’s reserve currency, improving cross-border payments and increasing financial inclusion are all seen as benefits of a U.S. digital currency, analysts led by Alkesh Shah, wrote in the note Monday. The Fed published a discussion paper last week on the benefits and risks of a U.S.…