Bank of England Reconsiders Digital Pound Amid Private Sector Innovation

The Bank of England is reevaluating the necessity of a retail digital pound as private sector payment technologies advance rapidly. Governor Andrew Bailey has openly questioned whether a central bank digital currency (CBDC) remains essential if commercial solutions achieve similar objectives.

Commercial banks have been urged to upgrade existing payment infrastructures, with several institutions already implementing faster and more efficient transaction systems. These developments may RENDER a state-backed digital pound redundant.

Senior officials at both the Bank of England and HM Treasury have scaled back their involvement in the digital pound development forum. The central bank plans to complete its design phase before making a final decision, but momentum has visibly slowed.