Bank of England says digital pound still in design phase

"You've got to distinguish between money and the rails on which money operates. The bank wants to make sure that we have the best technological solution that ensures the singleness of money. CBDC is one option - retail CBDC - as a different type of money, but that's very distinct from the rails that money is operating on."

"If a sterling stablecoin came along, as opposed to a digital pound, could we deal with that? Would that meet our standard of singleness of money, alongside commercial bank money or notes? That world has got more complicated even since we introduced the thinking on the digital pound."

The Bank of England is collaborating with HM Treasury to design infrastructure and technology for a UK digital pound, or central bank digital currency (CBDC). Deputy Governor Dave Ramsden emphasized distinguishing between money itself and the systems through which it operates, stating the bank must ensure technological solutions that maintain monetary singleness. A decision on retail CBDC is expected this year. The bank is also evaluating stablecoins' potential role in the UK's digital currency market, recognizing that the landscape has become more complex. The EU faces political pressure to accelerate digital euro development to bolster sovereignty and reduce dependence on the United States, with over 60 economists urging European Parliament support for the initiative.

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