LONDON–The Bank of England (BoE) is reportedly considering scrapping its development of a digital pound popularly known as the “Britcoin” amid widespread concerns about the feasibility of central bank digital currencies (CBDCs), according to a new report.
The U.K.’s central bank’s governor, Andrew Bailey, expressed strong doubts about creating the digital pound, Banking Exchange reported.
“I question why we need to introduce a new form of money,” Bailey told lawmakers during a recent Treasury committee hearing, the report stated.
‘Significant Backflip’
The publication noted the remark is a significant backflip from the BoE’s public position, such as just two years ago when it claimed a digital pound was “likely necessary.”
“We’re looking at the case for a digital pound,” the central bank states on its website, according to Banking Exchange. “We are now in a design phase which will look at the technology and policy requirements for a digital pound. In the design phase, we will test how it could work in the real world. This will bring to life innovative ways to use it so you can see how it might be useful and relevant to you…
Banking Exchange said the U.K.’s “apparent backflip” comes amid broader skepticism around CBDC initiatives. The report noted that both Australia and Canada have scrapped plans for retail digital currencies in the past year, while President Donald Trump issued an executive order halting work on retail CBDCs in January.
The Global Walk Back
“The global walk-back from CBDCs is in large part due to concerns about consumers’ privacy, as the currencies would not have the same anonymity as cash,” Banking Exchange added. “As a result, multiple banking regulators are reportedly looking to lean on private sector innovations rather than centralized digital currencies.”
