Central Bank ‘Money Drops’ With Digital Currencies Could Fuel Inflation: Bank of

[Tanimariya]

CBDCs could facilitate central bank stimulus in the form of money drops, and lead to higher inflation, says BofA.
Central bank digital currencies (CBDCs) could potentially facilitate powerful, directed “money drops” and raise inflation expectations, according to a March 31 report by Bank of America.

“CBDCs could boost the future transmission of monetary and fiscal stimulus,” the bank’s analysts wrote.

While the report doesn’t mention bitcoin (BTC), the analysis might show how countries’ adoption of CBDCs might indirectly create extra demand for the largest cryptocurrency as an investment hedge against inflation.

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