- Bloomberg reported that the UK Treasury and the Bank of England (BOE) are holding off on introducing the digital pound (Britcoin) and are considering slowing the pace of the project.
- Officials made the decision on expectations that private-sector innovation could serve as an alternative to a central bank digital currency (CBDC).
- Authorities plan to take time to assess whether tokenized deposits being developed by private banks can replace a CBDC.
Forecast Trend Report by Period
The UK Treasury and the Bank of England are poised to hold off on introducing a digital pound, Bloomberg News reported.
UK authorities are considering a middle-ground option that would slow the project rather than approve or scrap it, according to people familiar with the matter cited by Bloomberg on May 1. Britain had previously planned to make a final decision this summer on whether to proceed with the digital pound.
The approach suggests officials want to wait for more financial innovation from the private sector. They see private-sector developments as a potential alternative to a central bank digital currency, the people said.
Authorities plan to take time to assess whether tokenized deposits being developed by private banks could replace a CBDC. Tokenized deposits would rely on existing banking systems while offering faster and cheaper payment services.
Skepticism over the need for a digital pound is also behind the slower pace. Bank of England Governor Andrew Bailey has supported a wholesale CBDC for transactions between financial institutions, but has questioned the need for a retail CBDC for consumers.
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