UK Shifts Focus to Private Sector Innovation
The Bank of England is reevaluating its digital pound plans amid doubts about CBDC benefits. Insiders reveal the central bank is:
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Encouraging private payment solutions as alternatives
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Maintaining its “exploratory” stance on CBDCs
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Avoiding commitment to launch
Despite establishing a Digital Pound Lab in January, officials stress this is not a policy decision.
Bailey’s Cautious Stance
Governor Andrew Bailey recently told Parliament:
“If private solutions deliver value, do we need a CBDC?”
This marks a strategic pivot—pushing digital payment evolution onto banks and fintechs rather than the central bank.
Europe Charges Ahead with Digital Euro
The ECB is accelerating its digital euro project, citing:
Geopolitical tensions (especially US-EU relations)
Dependence on Visa/Mastercard
Pressure from EU leaders
“Legislation must keep pace,” said ECB’s Piero Cipollone, highlighting urgency absent in UK discussions.
US Takes Hardline Anti-CBDC Stance
America is moving in the opposite direction:
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House passed “Anti-CBDC Surveillance State Act”
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Trump’s executive order blocking CBDC development
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Banking lobby warning of financial risks
The ABA argues CBDCs threaten:
Privacy rights
Traditional credit systems
Financial stability
Global Divide Emerges
Three distinct approaches are crystallizing:
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EU: Full-speed CBDC development
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UK: Private-sector-first, CBDC optional
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US: Active CBDC resistance
This fragmentation could reshape cross-border payments and monetary policy for years.