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Despite what many anticipated, the crypto market is currently moving with downward momentum. The correction or drop seen in the prices of digital currencies has not shifted the attention from the crypto space. In fact, according to reports, the United States of America may be moving towards creating its own central bank digital currency or CBDC.
This news has been revealed by the Bank of America through a recent note. The note also stated that the adoption of stablecoin and CBDC is quite unavoidable now.
The prices of digital assets is fluctuating quite a lot and analysts are unable to determine what influences the market price at the moment. However, this has not discouraged people who are still looking to invest in cryptocurrencies.
If you are also interested in buying digital assets then make sure you opt for safe crypto exchanges that have not been hacked.
On the other hand, if you are looking to leverage trade Bitcoin or Ethereum up to 100x, sign-up on Bybit today. You can also use this link to claim a bonus on your first deposit.
Knowing About CBDCs and More
A central bank digital currency or CBDC is the digital version of a country’s fiat currency. The first CBDC in the world was launched by the Bahamas in 2020 and was called “Sand Dollar”. After this, CBDC started attracting more and more spotlight.
According to analysts, a CBDC is different from a digital asset because it is the liability of the Federal Reserve and not a commercial bank.
Two crypto strategists from Bank of America, Alkesh Shah and Andrew Moss, wrote about CBDCs in a recent note that stated that CBDCs are “an inevitable evolution of today’s electronic currencies,”
The note by Moss and Shah also stated:
“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.”
The note shared by the strategists also shed some light on the possible difficulties that can be faced such as:
- Protecting the privacy of users
- Handling illegal transactions
- Preserving financial stability
According to Moss and Shah, the use of digital assets is expected to grow. At the moment, crypto-related services such as payment apps and online bank accounts belong to private entities. However, a CBDC would become the liability of a central bank such as the Federal Reserve.
What Should New Crypto Investors and Traders Know?
Stepping into the crypto space for the first time can be both exciting and somewhat intimidating for people. However, the uncertainty of what to do can be reduced to some extent if they know what kind of exchange to choose and have a general overview of the market.
At the moment, the crypto market is seeing quite the price fluctuations for every digital asset. Despite that, many believe this to be necessary for an impressive price surge seen for cryptocurrencies in the future.
Therefore, if you are interested in buying crypto assets such as BTC or ETH then you can click on SwissBorg or Kraken (U.S. citizens) and invest.
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