Bank of England Reconsiders Digital Pound Amid Skepticism

The Bank of England is reportedly reevaluating its plans for a central bank digital currency (CBDC) as doubts grow about its necessity and potential benefits. Officials are privately urging commercial banks to accelerate payment innovations rather than pursue a consumer-focused digital pound.

Governor Andrew Bailey expressed skepticism at a Treasury Committee hearing, stating he WOULD need "a lot of convincing" if private sector solutions prove successful. This marks a significant retreat from the BoE's 2023 position that a digital pound was "likely needed" in the future.

The UK's CBDC development lags behind other jurisdictions, according to Atlantic Council data. No final decision has been made, but the deliberation reflects broader global cooling on state-backed digital currencies.