First Mover: Even Bank of America Acknowledges China Winning Digital-Currency Race
BoA researchers anticipate China's digital yuan might make a dent in the greenback’s global hegemony.
There is "no good reason to own BTC unless you see prices going up," the bank says, but it is intrigued by decentralized finance.
Betting on a bitcoin rally remains one of the hottest trades.
CBDCs could facilitate central bank stimulus in the form of money drops, and lead to higher inflation, says BofA.
Cryptocurrencies "challenge the ability of governments to levy taxes and to control capital flows more broadly," the report says.
Bank of America's January survey of fund managers indicated bitcoin is now seeing the most capital inflow.