Bank of England Governor Signals Potential Exit from Digital Pound Plans Amid Growing CBDC Skepticism

Bank of England Governor Andrew Bailey has voiced strong skepticism about the future of a digital pound, raising fresh doubts over the U.K.’s commitment to launching a central bank digital currency (CBDC), often nicknamed "Britcoin." Speaking during his annual Mansion House speech in London on Tuesday, Bailey questioned whether issuing a new form of central bank money is the right path forward.

“I remain to be convinced why the natural next step is to create a new form of money rather than put digital technology into retail payments and bank accounts,” Bailey stated, signaling a preference for upgrading existing financial infrastructure over launching a state-backed digital currency.

The Bank of England has been exploring the case for a digital pound since 2021 but has made no definitive decision. Bailey's latest comments now align the U.K. more closely with countries like Canada and Australia, which have already shelved their retail CBDC ambitions in the past year.

Bailey also sounded alarms over the rise of stablecoins such as USDC and Tether, warning that these dollar-linked assets could threaten the monetary sovereignty of domestic currencies. “There may well be a role for stablecoins going forward,” he acknowledged, “but I don’t see them as a substitute for commercial bank money.”

He further urged caution against private banks issuing their own stablecoin alternatives, warning it could divert capital away from traditional lending sectors like mortgages.

Bailey's remarks come as a notable divergence from the European Central Bank, which continues to push forward with plans for a digital euro. Despite his skepticism, the BoE governor emphasized the importance of modernizing the U.K.’s payment infrastructure, noting there is “an urgent need for innovation now in the area of payments.”

Meanwhile in the U.S., efforts to build out a regulatory framework for digital assets have hit a snag. What was supposed to be a productive “Crypto Week” in the House of Representatives stumbled as bipartisan disagreement stalled the advancement of several bills, including the stablecoin-focused GENIUS Act.

However, former President Donald Trump claimed on Truth Social that he has intervened, stating that he personally convinced 11 Republican holdouts to support the measure, potentially reviving legislative momentum later this week.

The U.K.'s mounting hesitation around CBDCs, combined with legislative gridlock in the U.S., reflects a broader reassessment of how best to integrate digital currencies into modern financial systems—without compromising stability, privacy, or monetary control.