The Bank of America does not think the Bank of England’s digital currency (CBDC) can only function as a form of digital currency, the Bank of England has said. The US financial institution says current accounts are more likely to be converted into “state cryptocurrencies” and that consumers will begin to save money.
The UK bank calls the potential CBDC “Britcoin” – essentially an alternative to cash. “Such construction is possible [no entanto] That would be 15 times more and could translate £ 440bn ($ 598bn) into current accounts and not £ 30bn in cash, “he wrote in a survey entitled” Digital Money in the UK “.
The Bank of England has not yet decided whether to create a digital libra. His most recent move was to establish two forums in September last year to discuss key issues surrounding the CBDC. The company said it could only introduce the digital currency in the second half of this decade.
Bank of America has said that it will be more convenient to change the verification account for Britcoins as the consumer has only a small amount of money. This can be a worrying area for commercial banks. Current accounts are the lifeblood of their business models, and they provide consistent, long-term financing.
The Bank of America’s assumption that the Bank of England’s assumption that users will only be a substitute for the digital pound with their cash reserves is a risk to banks, “said Bank of America, citing concerns raised recently by the House of Lords’ Affairs Committee. A potential UK CBDC.
