Plans for a UK “digital pound” have hit a snag as Bank of England officials grow increasingly sceptical about the project, raising doubts that any form of “Britcoin” will be introduced before the end of the decade.
The Bank and the government had been set to decide in 2025 whether to press ahead with formal development of a UK central bank digital currency (CBDC), with the original goal of an official launch by 2030. However, insider concerns over privacy, potential high costs, and persistent conspiracy theories have cast fresh uncertainty over the project’s future.
A “digital pound” would theoretically provide consumers with a secure electronic form of money, with transactions managed via smartphone apps and underpinned by the safety net of central bank backing. Yet some politicians and conspiracy theorists claim a CBDC could enable governments to restrict or monitor how people spend their money. Nigel Farage, leader of the Reform Party, has gone so far as to warn that a digital pound “will give the state total control over our lives.”
These anxieties—combined with practical concerns about the expense 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 split on whether the benefits outweigh the potential pitfalls. Ultimately, a final decision to move forward will rest with Bank governor Andrew Bailey and Chancellor Rachel Reeves.
International developments also complicate matters. In the US, lawmakers passed an “anti-surveillance” act in the House of Representatives, aiming to block any attempt to launch a digital dollar unless Congress explicitly authorises it. Meanwhile, the European Central Bank will decide at the end of 2025 whether it will forge ahead with a digital euro, despite resistance from Germany’s conservative Christian Democrats over user privacy.
These moves reflect a broader hesitance over CBDCs, particularly those intended for everyday use by retail customers. While authorities in the UK and Europe once viewed these digital currencies as a necessary response to private “stablecoins” such as Facebook’s now-defunct Libra, enthusiasm has faded in the face of technical and political obstacles.
Despite this growing coolness toward retail currencies, the push for a “wholesale” CBDC—used among commercial banks and financial institutions—remains strong. Policymakers believe a wholesale version could help streamline large interbank transactions and reduce systemic risk, without triggering many of the privacy concerns associated with consumer-facing digital money.
A Bank of England spokesperson confirmed that work on the digital pound remains “ongoing,” with no formal decision yet made on whether to proceed. They emphasised that any eventual introduction of Britcoin would be accompanied by primary legislation ensuring user privacy and control of their funds, in a bid to quell mounting public anxieties.
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Bank of England casts doubt on ‘Britcoin’ launch amid privacy and cost concerns