The Bank of England is reconsidering its stance on the introduction of a central digital currency amid dissatisfaction and slow progress. At the same time, UK authorities are taking action against illegal crypto ATMs.
Review of CBDC Plans
The Bank of England is contemplating the possibility of withdrawing plans for a central bank digital currency (CBDC), questioning the practicality of a digital pound. This week, Governor Andrew Bailey noted during a parliamentary committee session that successful commercial innovations in payment systems may lessen the need for a new digital currency. "If that’s a success, I question why we need to introduce a new form of money," he stated.
Closure of Illegal Crypto ATMs in the UK
The UK is intensifying its efforts against illegal cryptocurrency activities: recently, seven crypto ATMs in London were shut down, and two suspects were arrested. The operation was conducted by the Financial Conduct Authority (FCA) in collaboration with the Metropolitan Police. "Any illegal operation of crypto ATMs or exchanges will result in serious consequences," emphasized FCA Executive Director Therese Chambers.
Comparing International CBDC Trends and Consumer Protections
Global interest in CBDCs remains high, despite developments in the UK and the US. While three countries—The Bahamas, Jamaica, and Nigeria—have implemented digital currencies, 49 nations are in pilot phases. In the US, measures are also being taken to protect consumers amid rising fraud related to crypto ATMs. Proposed legislation aims to enhance transparency and consumer protections.
The Bank of England's shift in approach to CBDCs highlights the challenges facing digital currencies, while measures to combat illegal crypto ATMs demonstrate authorities' active engagement in maintaining legality within the financial sector.
