• 24 June, 2024

“CBDCs are Inevitable,” Says John Deaton Following Bank of America’s Praise

John E. Deaton, a well-known cryptocurrency litigator, has said that CBDCs are “inevitable,” adding that the world has to find out a currency that could bridge all the CBDCs, which is an obvious reference to cryptocurrencies.

Deaton made these comments in reaction to a report that Bank of America sees CBDCs and stablecoins as the wave of the future when it comes to monetary and payment systems. The lawyer also took a swipe at U.S. SEC chair Gary Gensler, calling XRP a “bridge currency,” and sarcastically said that if only someone in the U.S. government were aware of such currency and the benefits of its technology.

It is common knowledge that Gensler does not share the enthusiasm of the crypto community at large for cryptocurrencies in general and XRP in particular. The head of the SEC is shown in a video claiming that Ripple aspires to fill the role of payment messaging service occupied by Swift, which has been embraced by many banks.

He added that the blockchain payments firm wants to use XRP as a bridge currency for cross-border payments and that yes that is possible but crypto’s volatility could be an issue that will get in the way of that. 

As for the Bank of America, the financial institution has shared that it believes CBDCs and stable currencies have the potential to change global financial institutions and may be the most important technological innovation in the history of finance.

Bank of America anticipates that central banks in wealthy economies would prioritize payment efficiency and that central banks in developing nations will prioritize financial inclusion, both of which are dependent on the design and issue of CBDCs and hence carry different levels of risk. According to the bank, it’s likely that governments and central banks, with private sector involvement, will push the envelope on digital asset innovation.

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