Bank of England Governor Skeptical of Digital Pound Necessity
Bank of England Governor Andrew Bailey has cast doubt on the need for a UK central bank digital currency (CBDC), colloquially termed "Britcoin." Speaking at Mansion House, Bailey questioned whether creating new digital money was preferable to enhancing existing payment systems with digital technology. His remarks align with a growing skepticism among major economies, following Canada and Australia's recent retreat from retail CBDC projects.
Bailey also raised concerns about stablecoins potentially destabilizing national currencies. He cautioned banks against launching proprietary digital assets that could divert capital from traditional lending. The Bank of England continues to study a potential digital pound, though no decision has been made.
