The Bank of England (BOE) is expressing growing skepticism regarding the necessity of introducing a digital pound, which may lead to the cancellation of these plans.
Concerns about CBDC Necessity
According to Bloomberg, the Bank of England is re-evaluating its digital pound plans in light of uncertainty over its necessity and benefits. BOE officials are encouraging banks to focus on accelerating payment innovations instead of creating a consumer CBDC. BOE Governor Andrew Bailey stated he would need 'a lot of convincing' if commercial bank innovations succeed.
Limited Support for CBDC Amid Public Sentiment
Recent developments show dwindling interest in state-backed digital currencies worldwide. The Bank of England previously asserted that a digital pound 'might be needed' in the future. However, a current inquiry has attracted significant public discontent, receiving over 50,000 responses, many critical. Concerns about privacy and potential destabilization during crises further heighten skepticism regarding the introduction of a digital currency.
International Trends and CBDC Adoption
On the international scene, there is also a slowdown in the adoption of CBDCs. Notably, a bill was passed in the US that limits the Federal Reserve's ability to issue or test a CBDC without Congressional approval. Meanwhile, only three countries—Bahamas, Jamaica, and Nigeria—have officially launched their CBDCs, while 49 countries are in the pilot phase.
The Bank of England's stance on the digital pound reflects not only internal issues but also global trends regarding CBDCs. As this topic continues to evolve, changes in opinions from central banks and consumers alike are expected.
