Stablecoins dominance and Bank of England considers halting digital pound plans: report

Stablecoins continue to dominate the digital payments landscape, offering speed, global accessibility, and price stability tied to fiat currencies. Against this backdrop, the Bank of England is considering shelving its digital pound project, reflecting a growing skepticism about the need for a central bank digital currency when private stablecoins are so widely used and commercially developed.

Bank of England officials are now weighing whether to pause or set aside plans for a retail digital pound, especially for households, as questions mount regarding its unique value amid the robust uptake and development of stablecoins.

Industry observers point out that stablecoins—primarily issued by private entities and often pegged to currencies like the US dollar or British pound—already meet many consumer and business needs that a state-backed digital pound would address. This shift signals dwindling support for government-issued digital currencies at a time when stablecoins have become integral to global payments infrastructure.

Previously, the Bank of England had been progressing at full steam on the design phase of the digital pound, launching sandbox initiatives and ongoing stakeholder consultations to explore its feasibility and benefits. The central bank’s stated goals included fostering fintech innovation, enhancing payment efficiency, and supporting financial inclusion. However, with momentum swinging in favor of established stablecoins and concerns over the real-world impact and adoption of a digital pound, the project’s future now appears uncertain.

This trend mirrors similar dynamics seen globally, as central banks reevaluate digital currency projects amid the fast-growing dominance and practicality of private sector stablecoins.

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