The Bank of England casts doubt on the implementation of ‘Britcoin’ amid privacy and cost concerns
The UK’s “digital pound” plans have hit a snag as Bank of England officials grow increasingly skeptical of the project, raising doubts that any form of “Britcoin” will be launched before the end of the decade.
The Bank and the government were set to decide by 2025 whether to go ahead with the official development of the UK central bank’s digital currency (CBDC), with an initial target of official launch in 2030. However, internal concerns about privacy, which may be high. costs, and persistent conspiracy theories have created new uncertainty about the future of the project.
A “digital pound” could theoretically offer consumers a secure electronic currency, with transactions managed via smartphone apps and backed by a safety net of central bank funding. However, some politicians and conspiracy theorists say that the CBDC could enable governments to restrict or monitor how people spend their money. Nigel Farage, leader of the Reform Party, has even warned that the digital pound will “give the state total control over our lives.”
These worries—combined with practical concerns about the cost and complexity of creating a national digital currency—worry policymakers at the Bank. According to sources close to the program, officials are divided on whether the benefits outweigh the potential pitfalls. Ultimately, the final decision on the way forward will rest with Bank of England governor Andrew Bailey and Chancellor Rachel Reeves.
International developments also complicate matters. In the US, lawmakers have passed an “anti-surveillance” act in the House of Representatives, which aims to block any attempt to launch a digital dollar unless Congress expressly approves it. Meanwhile, the European Central Bank will decide by the end of 2025 whether to move forward with the digital euro, despite opposition from Germany’s conservative Christian Democrats over user privacy.
These moves reflect widespread skepticism about CBDCs, especially those intended for daily 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 defunct Libra, enthusiasm has waned in the face of technical and political obstacles.
Despite this growing cooling in retail capital, the push for a “full-fledged” CBDC—used among commercial banks and financial institutions—is still strong. Policymakers believe that the wholesale version can help facilitate large-scale transactions between banks and reduce systemic risk, without causing many privacy concerns related to digital currency facing consumers.
A spokesperson for the Bank of England confirmed that work on the digital pound remains “ongoing,” with no official decision yet to go ahead. They stressed that any eventual launch of Britcoin would be accompanied by a core rule guaranteeing user privacy and control of their funds, in an effort to quell growing public concerns.
