The Bank of England is reevaluating its plans for a central bank digital currency due to mounting public skepticism and privacy concerns surrounding a potential digital pound. This marks a significant shift from the institution’s previous momentum toward CBDC development.
Public consultations revealed substantial opposition, with over 50,000 critical responses highlighting deep-seated worries about financial stability risks and government surveillance capabilities through a centralized digital currency. These concerns are mirrored globally, evidenced by recent U.S. legislative action restricting CBDC development without explicit congressional approval.
Parallel developments show varied CBDC progress worldwide. Only the Bahamas, Jamaica, and Nigeria have fully launched central bank digital currencies to date. Elsewhere, 49 jurisdictions are conducting pilot programs, 20 have CBDC initiatives in active development, and 36 remain in research phases.
As the global CBDC landscape evolves, UK authorities are increasingly examining alternative forms of centrally backed digital money instead of pursuing a retail digital pound. This strategic pivot responds to both domestic apprehension and diverse international implementations while emphasizing that no final decision regarding the UK’s digital currency has been reached.