The Bank of England is changing its strategy regarding digital currencies, considering the abandonment of state-backed digital money.
Shift in Approach to Digital Currency
Governor Andrew Bailey recently indicated that if commercial solutions prove effective, there may be no need for a new government-backed digital currency.
Public Opinion and Criticism
The digital pound initiative in the UK has attracted thousands of critical responses, fueled by privacy debates and conspiracy theories. Critics warn that a government-controlled digital currency could lead to destabilizing bank runs and surveillance fears.
Comparison with Other Countries
Although no official decision has been made, the UK lags behind many countries in CBDC development. According to the Atlantic Council, only three nations—Jamaica, Nigeria, and the Bahamas—have fully launched CBDCs, while many others remain in early testing or research phases.
The possibility of abandoning the digital pound in the UK highlights the need for greater public support and a clearer use case for such technologies.
