Plans for a UK “digital pound” have hit a snag as Bank of England officials grow increasingly sceptical about the project, raising doubts that any form of “Britcoin” will be introduced before the end of the decade.
The Bank and the government had been set to decide in 2025 whether to press ahead with formal development of a UK central bank digital currency (CBDC), with the original goal of an official launch by 2030. However, insider concerns over privacy, potential high costs, and persistent conspiracy theories have cast fresh uncertainty over the project’s future.
A “digital pound” would theoretically provide consumers with a secure electronic form of money, with transactions managed via smartphone apps and underpinned by the safety net of central bank backing. Yet some politicians and conspiracy theorists claim a CBDC could enable governments to restrict or monitor how people spend their money. Nigel Farage, leader of the Reform Party, has gone so far as to warn that a digital pound “will give the state total control over our lives.”
These anxieties—combined with practical concerns about the expense and complexity of creating a national digital currency—are weighing heavily on policymakers at the Bank. According to sources close to the process, officials are split on whether the benefits outweigh the potential pitfalls. Ultimately, a final decision to move forward will rest with Bank governor Andrew Bailey and Chancellor Rachel Reeves.
International developments also complicate matters. In the US, lawmakers passed an “anti-surveillance” act in the House of Representatives, aiming to block any attempt to launch a digital dollar unless Congress explicitly authorises it. Meanwhile, the European Central Bank will decide at the end of 2025 whether it will forge ahead with a digital euro, despite resistance from Germany’s conservative Christian Democrats over user privacy.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
