Bank of England pauses on 'Britcoin' plans

The Bank of England is increasingly doubtful about launching a “Digital Pound,” putting its introduction before 2030 into question. 

A two-year consultation with the treasury on the feasibility of the so-called "Britcoin" has raised concerns over privacy, implementation costs, and public trust.  

The bank of England initially envisioned it as a secure and innovative payment method.

'Lacks compelling purpose'

The digital pound would be a state-backed alternative to cash and private cryptocurrencies. However, critics argue it may lack a compelling purpose. 

Globally, central banks are exploring digital currencies to address the rise of private cryptocurrencies and safeguard monetary stability.

Yet, similar initiatives have faced resistance due to fears of surveillance and the erosion of financial autonomy.  

For the UK, implementing a digital pound would require substantial technological investments and robust safeguards to protect user privacy.

Policymakers are expected to decide in 2025 whether to proceed with development.

While some see potential for a digital currency to modernise payments, doubts about its necessity and public acceptance leave its future uncertain. 

The "Britcoin" debate reflects broader questions about the role of central banks in a digital economy.

A spokesperson for the Bank of England confirmed that work on the digital pound is still in progress, and no formal decision has been made yet regarding its introduction.

They emphasised that if Britcoin is eventually launched, it will be accompanied by primary legislation designed to ensure user privacy and control over their funds, in order to address growing public concerns.

(With inputs from the agencies)