Bank of England doubts necessity of digital pound for consumers

The Bank of England is reconsidering plans for a digital pound, questioning whether it's really needed. While waiting for the government's decision, the regulator is pushing private banks to speed up payment innovations that could deliver the same benefits.

The review was prompted by reduced expected benefits of the digital currency, as identified in a Bank of England internal survey. Given that citizens already widely use modern electronic payments, creating a state-backed digital currency appears increasingly unjustified.

Bank of England Governor Andrew Bailey openly expressed skepticism, stressing there's no compelling case for launching a new form of money. While he supports developing a digital currency for financial institutions, he opposes making it available to the public.

Officials are also worried about potential risks, like money flowing out of banks if people switch en masse to a digital pound, and the growing influence of foreign stablecoins. Given current trends in private-sector tech, launching a digital pound might end up being seen as unnecessary.