Bank of England Delays Decision on Digital Pound

The Bank of England has announced that it will not make a decision on the implementation of a central bank digital currency, or digital pound, until at least 2025. This delay follows a public consultation that raised privacy concerns, with Governor Andrew Bailey indicating that a digital currency may be necessary if traditional banks do not improve their payment systems. The BoE is currently collaborating with the finance ministry on the design phase, which will inform the policy case for the digital pound. The government has emphasized that while a digital pound would be private, it would not be anonymous, allowing authorities to monitor transactions for potential illicit activities. The timeline for a decision has been pushed back as the bank aims to assess developments in the payments landscape during the design process. Overall, the central bank remains cautious about the need for a digital currency amid evolving financial technologies.