Bank of England Will Not Rush to Introduce Digital Pound

The Bank of England (BOE) has announced that it will not accelerate the introduction of the 'digital pound', a central bank digital currency (CBDC). It believes that private stablecoins and tokenized deposits from banks could lead digital payment innovations, thus the necessity for the central bank to issue digital currency will be carefully assessed. At the IMF annual meeting held in Bangkok on the 12th, Deputy Governor Sarah Breeden stated, "The digital pound may not be needed so quickly." Breeden explained that the decision to introduce the digital pound depends on how much the private sector can realize the benefits of tokenization technology. The Bank of England has been considering the introduction of a retail CBDC for several years, but it now believes that the necessity for the central bank to issue digital currency is changing due to advancements in payment technologies by private financial institutions. Breeden emphasized that the decision on the digital pound will depend on how much the benefits of tokenization and financial innovation can be secured through other means. Additionally, the Bank of England is also actively fostering pound-based stablecoins, suggesting the possibility of three major pound stablecoins emerging in the future. The Bank of England is also focusing on modernizing existing financial infrastructure and plans to enhance the Real-Time Gross Settlement (RTGS) system.

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