The Bank of England does not see an urgent need to introduce a central bank digital currency (CBDC) for the general public, according to remarks made by one of its Deputy Governors on 12 October 2026. The official said that the decision on whether to proceed with a retail CBDC, known in the UK as ‘Britcoin’, would depend on whether the benefits of tokenisation and new payment methods could be achieved by other means.
The official suggested that commercial stablecoins and tokenised deposits developed by banks could fulfil the role envisaged for a digital pound, and questioned whether central bank money needs to lead this shift. The comments indicate that the BoE has adopted a wait-and-see approach while other developments take place within the payments system, as reported by Bloomberg.
A declining share of central bank money
The BoE has been developing the Britcoin option for several years, although opponents have argued that a retail CBDC could be used as a form of financial surveillance. Over the same period, the UK payments landscape has changed considerably, with cash usage collapsing over the past 20 years. According to the official, central bank money has fallen from two-thirds of transactions in the economy to 8%, raising the question of whether the UK monetary system remains anchored when central bank money plays a smaller role.
Rather than relying on a single form of digital money, the official described a ‘multi-money’ model in which cash, a CBDC (if one is issued), commercial bank deposits, tokenised deposits, and stablecoins, all denominated in sterling, can be exchanged seamlessly at par. Stablecoins are tokens pegged to a currency and designed to make payments faster and cheaper, particularly across borders. In addition, tokenised deposits allow payments to be settled through shared digital infrastructure.
Instead of prioritising a retail CBDC, the BoE is upgrading its Real Time Gross Settlement (RTGS) system so that its liabilities can serve as the settlement asset for sterling financial market transactions. The aim is to capture the functionality associated with tokenisation, including 24/7 instantaneous settlement, while keeping central bank money at the core of that settlement process.
Sterling stablecoins and regulatory oversight
The official also reiterated the BoE’s position that UK firms should develop sterling stablecoins as an alternative to the dominance of US dollar-denominated tokens in the market. The central bank’s concern is that UK consumers and businesses could otherwise access new payment methods only through USD stablecoins, an outcome the official described as undesirable.
The BoE expects three dominant sterling stablecoins to emerge, with demand of approximately EUR 46 billion for each. In parallel, it is strengthening its role as a stablecoin regulator, with the stated objectives of preserving the ‘singleness of money’ and ensuring that stablecoins are integrated into the payment system so that households and businesses can use them widely as money.
The remarks shift attention from a public digital pound towards private-sector forms of digital money operating under BoE oversight and settling in central bank money. For banks and prospective stablecoin issuers, the BoE’s position indicates that tokenised deposits and sterling stablecoins are expected to play a central part in the UK’s digital payments infrastructure. Any decision on a retail CBDC remains linked to how these alternatives develop.
