Morgan Stanley is highlighting increasing interest in central bank digital currencies (CBDCs) in a recent report about the potential decline of the U.S. dollar's global dominance.
What Happened: The bank's report suggests a significant trend toward reducing reliance on the U.S. dollar paralleled by growing enthusiasm for digital currencies like Bitcoin (CRYPTO: BTC) stablecoins and CBDCs.
“By mid-2023, 111 countries, representing over 95% of global GDP, are actively exploring CBDCs," Andrew Peel, the executive director and head of digital asset markets at Morgan Stanley, said in the report.
Peel elaborated on the rationale for CBDCs, saying they leverage "the efficiency, transactional savings, and the benefits ...