Bank of America analysts believe regulators will have to “either innovate technologically or become irrelevant in the long term”

Bank of America believes that digital assets have become a logical development of the monetary system and payments. This is stated in the new report of the investment bank.

“CBDCs do not change the definition of money, but are likely to change the way value moves in the next 15 years,” the experts wrote.

According to analysts, digital currencies issued by regulators have the potential to “revolutionize global financial systems and could become the most significant technological achievement in the history of money.” Bank of America believes that monetary regulators in various countries will focus on improving the efficiency and availability of payment transactions.

At the same time, experts say, digital assets of regulators can compete with bank deposits. This is fraught with a “loss of monetary sovereignty” and growing inequality between different jurisdictions.

However, some countries will not issue their own payment assets even in the next 10 years. However, regulators will be forced to “either innovate technologically or become irrelevant in the long term.”

And Bernstein analysts are confident that over the next decade, the income of the crypto industry will grow by more than 16 times — from $25 billion to $400 billion.

“This year will lay the foundations for a ten-year golden age of dapps innovation. This will happen due to the transition of the industry from the thesis of a “profitable” infrastructure to the thesis of a “profitable” application,” the experts noted.

50% of the $400 billion will come from dapps, although now their share is no more than 15%. The 100x increase in revenue for projects related to decentralized protocols will be due to “innovations in the field of blockchain scalability and an increase in the number of applications in the financial services and consumer technology segments.”

In the field of financial services, decentralized exchanges, lending, and tokenized solutions will become prerequisites for growth. And in the field of consumer applications, experts are waiting for an increase in the profitability of NFTs, which are based on games.



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