Key Insights:
- The Bank of England may scrap plans for a digital pound, amid its rising confidence in private sector payments.
- Governor Andrew Bailey is skeptical of CBDCs and prefers to explore tokenized deposits from commercial banks.
- Public backlash, privacy concerns and political resistance are weakening the momentum for CBDCs around the world.
The Bank of England (BoE) is reportedly on the verge of canceling its ambitious plans for a central bank digital currency (CBDC). According to a Bloomberg report that cited insider sources, the UK’s central bank is now looking towards the private sector for its digital payments.
In essence, the need for a digital pound is starting to look less and less apparent.
From Enthusiasm to Hesitation
The digital pound project once held an esteemed seat in the UK’s roadmap.
Two years ago, BoE Governor Andrew Bailey pointed out that a digital pound would “likely” be necessary. Fast-forward to this year, and his stance has cooled considerably.
🚨 UK May Rethink Digital Pound Plans Amid Banking Innovations
Bank of England Governor Andrew Bailey stated on July 22, 2025, that if ongoing collaboration between the central bank and commercial banks proves effective, the necessity of launching a UK central bank digital… pic.twitter.com/Z1VSNllwfT
— The Tradesman (@The_Tradesman1) July 22, 2025
In a conversation with the Treasury Committee, Bailey remarked, “If commercial bank innovations succeed, I question why we need to introduce a new form of money.”
The BoE now seems to believe that the private sector can provide similar benefits to any CBDC, without the risks associated with launching one.
The central bank has not made a formal decision yet. However, it is choosing to stay flexible. If a digital pound becomes necessary in the future, the BoE wants to be ready. However, for now, it prefers to wait and see how private solutions perform.
This stance also works well with the BoE’s newly released Financial Services Growth and Competitiveness Strategy. While the strategy still mentions an ongoing “exploration” of a digital pound, it appears to be focused on innovation, rather than issuing a new currency.
Rising Public and Political CBDC Resistance
The digital pound initiative hasn’t just faced technical scrutiny, it has also drawn much criticism from the public.
Over 50,000 responses poured in when the BoE and HM Treasury opened the floor for public comments, and most of them were negative. The main issues with the proposed digital pound CBDC involved privacy and the possibility of government surveillance.
Critics also warned of unintended consequences like triggering bank runs during financial crises, or opening doors to tech monopolies.
The Push For CBDCs Around The World Is Slowing
The UK’s hesitation is part of a much larger trend around the world. According to the Atlantic Council’s CBDC tracker, only three countries including the Bahamas, Jamaica and Nigeria have officially launched a CBDC. Another 49 are in the pilot phase, 20 are in development and 36 are still researching.
Yet, even among countries furthest along, some are pulling back. South Korea recently paused its CBDC plans to focus on stablecoins and in the United States, the calls for a CBDC appears to be stalling.
The U.S. House of Representatives recently passed the Anti-CBDC Surveillance State Act, which would block the Federal Reserve from issuing or even testing a CBDC without congressional approval. This was followed by the passing of two more crypto bills that favor private stablecoins over government-backed ones.
Even though the final version of the GENIUS Act did not include an outright CBDC ban, it has still sparked debate. Republican Congresswoman Marjorie Taylor Greene accused the act of being a “backdoor” for the government to eventually introduce a CBDC disguised as a privately issued stablecoin.
Overall, with CBDCs losing ground, stablecoins are quickly becoming the preferred digital payment alternative around the world.
