The Bank of England believes that the launch of a digital pound is inappropriate
Date: 2025-07-23 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Amid the rapid development of electronic payment technologies, the regulator noted that the creation of a digital pound for the general public may be too expensive and ineffective. According to the Governor of the Bank of England, Andrew Bailey, the significant costs of developing and implementing a CBDC will be difficult to justify, especially if commercial banks can offer consumers convenient alternative payment solutions.
During a recent meeting with representatives of the UK Treasury, Bailey emphasized that although plans to launch a digital currency formally remain in force, the bank is ready to stop work on the project at any time. This is due to the fact that the advantages of a CBDC in the current conditions are inferior in significance to existing and developing electronic payment technologies.
It is worth noting that a year ago, the Bank of England, together with the UK Treasury, announced the possibility of launching a digital pound as early as 2025, subject to the adoption of the necessary legislative measures. However, the regulator's current position indicates a rethinking of the feasibility of such an initiative.
Thus, the main focus is now on stimulating commercial banks to accelerate the development and implementation of innovative payment instruments that could provide consumers with convenience and security without the need to create a central bank digital currency.
As a result, the Bank of England is demonstrating a cautious approach to large-scale changes in the monetary system, giving preference to the development of alternative technologies that can meet the needs of the modern market without unnecessary costs and risks.
