BOE Governor Questions Need for Consumer Digital Pound

Bank of England Governor Andrew Bailey casts doubt on the need for a “digital pound” for consumers, arguing that a clear use case for a retail central bank digital currency (CBDC) is not yet proven.

In comments reported by Bloomberg in early June 2025, Bailey noted that existing payment systems may already be sufficient for the public.

I’m not yet convinced that we need to create new forms of money,

he said.

A Tale of Two Projects: Wholesale vs. Retail

It's important to understand that the Bank of England is exploring two different types of CBDCs. While Governor Bailey questions the need for a retail digital pound for the general public, he stressed that work on a wholesale CBDC remains a clear priority. A wholesale version would be used for secure, real-time settlements between large financial institutions.

His skepticism is focused squarely on the consumer side. The Bank and government will continue the design phase for a retail digital pound, but Bailey emphasized that no final decision will be made before 2025 and any launch would require primary legislation from Parliament.

A “Failure of Imagination”? Bailey's Nuanced Stance

Despite his cautious tone, Bailey is not entirely dismissing the idea. He acknowledged the need for innovation and wants to be convinced of the project's benefits.

I start with the presumption that there should be benefits here – it seems like a failure of imagination if we think otherwise,

Andrew states further.

His comments suggest a core principle: a digital pound should only be issued if it offers clear and tangible advantages over the UK's existing payment infrastructure and evolving private-sector solutions. The Bank's Digital Pound Lab continues testing APIs and potential use cases, but without a compelling reason, the project may not move forward for consumers.