” . LONDON: Bank of England officials are mulling whether to set aside plans to create a digital pound for households amid growing skepticism about the project’s benefits, the latest sign of dwindling support for state-backed digital currencies globally.The BOE has been privately urging the banking industry to instead accelerate payment innovations that could result in similar benefits without the creation of a central bank digital currency – or CBDC – for consumers, according to people familiar with the matter.The people said the central bank wants to be in a position to launch a CBDC if it is eventually warranted. But it is willing to step back if private businesses continue to roll out new electronic-payment technologies, and its staff believe the gains from pressing ahead with a digital pound launch have diminished.The BOE declined to comment. But Governor Andrew Bailey on Tuesday said at a Parliamentary hearing that “if the work with the commercial banks is successful, I would need a lot of convincing” on the need for so-called Britcoin.”I think that’s a sensible place to do it,” he told the Treasury Committee. “If that’s a success, I question why we need to introduce a new form of money.”Live EventsThe bank’s latest approach marks a shift in its tone from only a few years ago, when BOE and Treasury officials said they thought a digital pound was “likely” to be needed. They will make a joint decision on whether to push ahead with the project once the current “design” phase is complete.The BOE governor previously voiced his doubts publicly and has put his focus on banks stepping up a push to tokenized deposits, which is seen as a way to create a stable bridge between traditional finance and digital assets.The change reflects the dwindling interest globally in the creation of state-led digital currencies as stablecoins and other payment innovations emerge. The Trump administration has blocked further work on a CBDC in the US, citing financial stability concerns, and last month South Korea’s central bank halted its digital currency pilot program. In contrast, the European Central Bank is still pressing ahead with the launch of a digital euro.Recent research by BOE staff found that the benefits from launching a CBDC are diminishing and senior officials have stepped back from chairing a committee that discusses the project with the private sector in a possible sign of declining interest.(You can now subscribe to our Economic Times WhatsApp channel)Read More News ondigital poundbank of englandcbdcandrew baileytrump administration(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless(You can now subscribe to our Economic Times WhatsApp channel)Read More News ondigital poundbank of englandcbdcandrew baileytrump administration(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….morelessExplore More StoriesConservative MPs rally behind trucker convoy leaders as sentencing looms, saying, ‘They’re heroes, not criminals!’Boston high society scandal: Coldplay affair exposes elite Cabot family’s dirty laundryWho is Luciano Frattolin? The grieving father at the heart of the Melina Frattolin tragedyMajor Canada meat recall over Salmonella risk; over 60 salami products included across six provinces‘All our exports have stopped’: Canadian steel industry amid US tariffsYegor Chinakhov wants a trade, but who’s buying after just 1 point in 9 games?Canada’s rich getting richer, poor getting poorer, income gap reaches historic high as wages decline and investment surgesWhich type of earthquake was the Alaskan quake? Understanding Foreshocks, Mainshocks, and AftershocksAlaska earthquake of 7.3 magnitude strikes near Sand Point; tsunami warning for Kodiak, Cold Bay, and Unimak PassCanada’s Parents and Grandparents Sponsorship 2025 intake begins July 28; steps to take if you’re invited and what to do if you’re notWho is Elsie Hewitt? Comedian Pete Davidson’s girlfriend and mom-to-beEugenie Bouchard to retire at Canadian Open; still single, here’s what she’s worthWorld Emoji Day 2025: Here are Canada’s most popular emojis123 . ”
