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Key Notes The Bank of England is reportedly reconsidering its plans for a consumer-focused digital pound. Governor Andrew Bailey has publicly voiced skepticism about the need for new forms of money like CBDCs. The BOE is now urging banks to focus on tokenized deposits and payment innovations. The Bank of England (BOE) took a complete 360 on its earlier stance on the debut of a digital dollar, raising fresh doubts about the future of central bank digital currencies (CBDCs) in the UK. According to a recent Bloomberg report, officials are now leaning toward shelving the consumer-facing version of the digital pound, citing diminished benefits and a shift in priorities toward alternative payment innovations. BOE Is Encouraging Banks to Use Alternatives Sources familiar with the matter told Bloomberg that the BOE has been privately encouraging banks to prioritize innovations in electronic payments and tokenized deposits, solutions that could replicate many of the advantages of a CBDC without the need to launch one. While the bank still wants to retain the capability to issue a CBDC in the future, its current stance suggests a growing willingness to abandon the retail digital pound project if private-sector innovation continues to progress. A Shift in Tone This is a substantial departure from the BOE’s tone just a few years ago, when officials, including the UK Treasury asserted that a digital pound was “likely” to be necessary. BOE Governor Andrew Bailey has since expressed public skepticism, stating in June that he remains unconvinced of the need to “create new forms of money.” Instead, Bailey has shifted his focus to tokenized bank deposits as a more practical and stable bridge between traditional finance and the digital asset space. CBDC Push Losing Steam Globally In the US, President Donald Trump’s administration has put its own CBDC project on…

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Filed under: News - @ July 22, 2025 10:29 am