Plans for a British “digital pound” have run into trouble as Bank of England officials grow increasingly skeptical of the project, raising doubts that any form of “Britcoin” will be introduced before the end of the decade.
The Bank and the government would decide in 2025 whether to proceed with the formal development of a British Central Bank Digital Currency (CBDC), with the initial target for an official launch in 2030. Insiders’ concerns about privacy, potentially high costs and persistent conspiracy theories have created new uncertainty about the future of the project.
A ‘digital pound’ would theoretically offer consumers a secure electronic form of money, with transactions managed via smartphone apps and backed by the safety net of central bank support. Yet some politicians and conspiracy theorists argue that a CBDC could allow governments to restrict or monitor the way people spend their money. Reform Party leader Nigel Farage has gone so far as to warn that a digital pound will ‘give the state total control over our lives’.
These concerns – combined with practical concerns about the costs 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 divided over whether the benefits outweigh the potential pitfalls. Ultimately, the final decision on whether to move forward will rest with Bank Governor Andrew Bailey and Chancellor Rachel Reeves.
International developments also complicate matters. In the US, lawmakers in the House of Representatives have passed an ‘anti-surveillance bill’ aimed at blocking any attempt to launch a digital dollar unless Congress explicitly authorizes it. Meanwhile, the European Central Bank will decide by the end of 2025 whether to go ahead with a digital euro, despite resistance from Germany’s conservative Christian Democrats over user privacy.
These moves reflect a broader hesitancy toward CBDCs, especially those intended for everyday use by retail customers. While authorities in Britain and Europe once viewed this digital currency as a necessary answer to private “stablecoins” like Facebook’s now-defunct Libra, the enthusiasm has faded due to technical and political obstacles.
Despite this growing coolness towards retail currencies, the push for a “wholesale” CBDC – used by commercial banks and financial institutions – remains strong. Policymakers believe a wholesale version could help streamline large interbank transactions and reduce systemic risks, without raising many of the privacy concerns associated with consumer-oriented digital money.
A spokesperson for the Bank of England confirmed that work on the digital pound remains ‘ongoing’, and that no formal decision has been made on whether to move forward. They stressed that any eventual introduction of Britcoin would be accompanied by primary legislation that would guarantee users’ privacy and control over their money, in an effort to quell growing public concerns.