Bank of England weighs scrapping Britcoin plans as industry solutions reduce need for CBDC

The Bank of England is reassessing its plans for a digital pound, commonly referred to as ‘Britcoin.’ Private sector payment innovations are evolving, prompting officials to question if a retail CBDC is necessary.

There is a declining global enthusiasm for retail central bank digital currencies, largely due to privacy concerns and competitive alternatives. Recent Bank of England research indicates reduced benefits from launching a CBDC, influencing senior officials’ engagement.

Governor Andrew Bailey highlighted skepticism regarding a digital pound’s necessity if ongoing private sector collaborations prove fruitful. Additionally, concerns linger about the rise of foreign stablecoins impacting trust in traditional currency.