Bank of England Governor Andrew Bailey has raised doubts about the need for a digital pound for consumers, indicating that the project may be unwarranted.
Andrew Bailey's Statement on Digital Pound
At a conference in Kyiv, Bank of England Governor Andrew Bailey discussed the question of a digital pound for consumers. He remarked, "I start with the presumption that there should be benefit here – it seems like a failure of imagination if we think otherwise." However, he expressed uncertainty about whether creating new forms of money, like Central Bank Retail Digital Currency (CBDC), is necessary to achieve these benefits.
Public Discussion
The digital pound project has generated significant public discussion, with over 50,000 responses submitted to a consultation launched in 2023. Deputy Governor Jon Cunliffe noted that many respondents raised concerns about privacy, the future of cash, and the potential for the central bank to control how the currency is used.
Digital Pound Project in Development Phase
The Bank of England is currently in the design phase of its retail central bank digital currency and is lagging behind other countries in this regard. Together with the UK Treasury, it has not yet decided whether to proceed with creating a digital pound for the public.
Thus, despite certain potential advantages of CBDC, the necessity of developing a digital pound for everyday consumers remains in question both at the Bank of England and within the public.
