Bank of America to research more into digital currencies

The Bank of America formed a new team of crypto researchers to look into digital currencies. This research team was formed way back in the month of July, i.e., three months ago.

The members of the team believe that the current market capitalization of these digital assets is now 2 trillion USD and can’t be ignored.

The huge advancement of cryptocurrencies in the year 2021 made them popular all across the globe. Countries like India have been on the second number in the list with the highest number of crypto investors.

A new research note by the team led by Alkesh Shah mentioned that there are currently more than 200 million users of these currencies. Hence, this feat puts them in an entirely new asset class. The analysts further mentioned:

“Bitcoin is important with a market value of ~$900bn, but the digital asset ecosystem is so much more: tokens that act like operating systems, decentralized applications (DApps) without middlemen, stablecoins pegged to fiat currencies, central bank digital currencies (CBDCs) to replace national currencies, and non-fungible tokens (NFTs) enabling connections between creators and fans.”

Bank of America recognizes the growth of cryptocurrencies

The Bank of America further accepted that the institutional investment that was put into cryptocurrencies had surpassed $17 billion in the first half of 2021.

The Bank of America further added that 2021 saw record investors, ‘dwarfing’ a mere 5.5 billion USD from last year. The analysts of the team were assembled by the Bank of America perceive regulatory issues as the only short-term risk for cryptocurrencies.

After researching the growth of non-fungible tokens, blockchain gaming, supply chain, and social media, the analysts confirmed that this is the mere beginning. There are a number of entities that still need time to be covered in the blockchain industry.

One can be certain that with the popularity of NFTs on the rise and blockchain gaming getting more popular, there are many more sectors of blockchain-based entities that need to be exploited by developers.