The Governor of the Bank of England questions the necessity of CBDC "Britcoin"

The Governor of the Bank of England (#BoE ), Andrew Bailey, has expressed skepticism about whether the UK really needs a digital pound (CBDC), also known as "Britcoin". He has become the latest official in a major economy to question the benefits of central bank-issued digital currency.

Concerns about #stablecoin and the priority of innovating the payment system

In his annual speech in London, Bailey raised the issue: "I am still not convinced that the natural next step is to create a new form of money, rather than applying digital technology to retail payments and bank accounts." He was also cautious about the rise of stablecoins, fearing that they could undermine the sovereignty of local fiat currencies. Governor Bailey emphasized the need to demonstrate the safety of stablecoins and suggested that they cannot replace commercial bank money.

Additionally, Bailey called on major banks not to launch their own alternative digital assets, as this could reduce capital for mortgage lending. Despite reservations about #CBDC and stablecoins, Bailey stressed that "there is an urgent need for innovation right now in the payments sector," and it is crucial that the existing infrastructure be prepared for the future. This indicates that the BoE may not pursue a digital pound, going against the trend of developing the EU's digital euro.