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Bank Draft

/ˈbæŋk dræft/noun
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A bank draft is a secure financial instrument issued by a bank, representing a guaranteed payment drawn on its own funds, making it as reliable as cash for the recipient. It's commonly used in high-stakes transactions like international trade or real estate to eliminate the risk of bounced checks or fraud, offering a modern alternative to personal checks in an era of digital payments.

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Bank drafts were instrumental during the California Gold Rush in the 1850s, enabling miners to send over $50 million in equivalent value back East without the peril of carrying gold, which helped fuel the rapid economic growth of the United States by securely channeling wealth across vast distances.

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