The Bank of England (BOE) Governor Andrew Bailey has articulated a clear position regarding the future of digital currency in the UK, asserting that it will not supplant cash as long as there is a demand for physical money. While the initiative to develop a digital iteration of the British pound, popularly known as 'Britcoin', is underway, a definitive decision regarding its official launch remains pending.
During remarks made in Washington, Bailey highlighted the BOE's cautious approach toward the introduction of a retail Central Bank Digital Currency (CBDC). He stated that any CBDC aimed at general public use must not replicate the functionalities of cash entirely. Instead, he emphasizes the importance of supporting the wholesale variant of CBDCs as preferable for banks.
Moreover, the BOE is committed to developing a retail CBDC to facilitate innovation within the private sector, thereby enabling commercial banks to enhance their digital payment infrastructures..