Fidelity’s new blockchain-based digital dollar could cost banks up to $500 billion by 2028, marking a significant shift toward decentralized finance infrastructure.
Fidelity is preparing to launch a digital dollar on the Ethereum blockchain, which will include the ability to freeze assets. Industry projections suggest traditional banks could face losses of up to $500 billion by 2028 due to reduced reliance on legacy payment systems. The move represents a major development in institutional adoption of blockchain technology, potentially reshaping the competitive landscape between traditional financial institutions and decentralized finance platforms.