Bank of America: UK CBDC has the potential to replace checking accounts

Bank of America (BoA) said in its report that the Bank of England digital currency (CBDC) will not only become a form of digital cash, it is more likely to replace checking accounts as the way consumers hold most of their funds. "Such a structure could displace £440bn ($598bn) of daily deposit accounts, rather than just £30bn in cash, which could be 15 times larger," the report reads. A checking account, or checking account as it is known in the UK, is the backbone of a commercial bank's business and provides banks with long-term stable funding. In extreme cases, a UK CBDC could lead to a restructuring of the financial institutional framework, the BoA said.