Tl; DR
- After spending 24 million pounds sterling in research, the Bank of England is Rethink his plans for digital books due to solid problems of public counterpoup and confidentiality.
- Governor Andrew Bailey Favors token banking deposits on a currency supported by the state.
- At the same time, new regulations will limit the exposure of banks to cryptocurrencies and strengthen the monitoring of stablecoins, Prioritize private innovation on an official digital book.
Once presented as an inevitable step for the “modern” United Kingdom monetary system, THE digital book now appears closer to the floor of the single room than everyday wallets. With more than 50,000 citizens expressing concerns about privacy and surveillance, and criticisms calling the useless project, The Bank of England began to rotate. Instead of introducing a new digital currency from the central bank, Managers encourage commercial banks to speed up existing digital payment upgrades This would offer many of the same advantages.
Governor Bailey argued that the transformation of traditional deposits into tokenized forms could meet the demand for faster secure payments without the risks associated with a digital currency issued by the State. This position highlights the decrease in global enthusiasm for Cbdcs. While the European Central Bank still pursues a digital euro, other major economies, including the United States and South Korea, have recently reduced similar initiatives.
Confidentiality problems and technical barriers erod the support
Many criticisms warn that a digital book could threaten financial freedom and expose transactions to state surveillance. The former economist of Banque Neil Record labeled the plan An expensive error, Stressing that most people already like safe and interest digital accounts through established banks.
Consultations have also revealed fears that, in times of crisis, people could flock to digital books, Draining the commercial banks of deposits and undermining the wider financial sector. Legislators like Lord Forsyth see few reasons to pay taxpayers more money in a concept with few clear advantages when Proven payment solutions already exist.
Surveillance of Stablescoin grows
By moving away from a digital book, The Bank of England increases efforts to regulate private digital money. By 2026, the new rules based on Basel will end Crypto Holdings for British banks at 1% of assets to protect themselves against volatility and market shocks.
Governor Bailey remains open to future CBDC discussions If technology or consumption habits change considerably. For the moment, however, the United Kingdom seems more focused on the modernization of existing financial infrastructure than to completely reinvent money. Pro-crypto Voices see this change as proof that decentralized assets and private payment innovation Stay strong alternatives to centralized state projects that find it difficult to gain public confidence.
