Bank of England Considers Halting Digital Pound Plans Amid Stablecoin Rise

• The Bank of England is reportedly considering halting its digital pound project, shifting its focus towards stablecoins and other payment innovations, although a final decision is still pending.

• Governor Andrew Bailey has expressed doubts about the need for a retail CBDC, suggesting banks prioritize tokenized deposits instead, while remaining supportive of a wholesale CBDC for inter-institutional transactions.

• This shift in perspective comes as the BOE acknowledges the diminishing benefits of a CBDC and expresses concerns about the potential systemic risks posed by unregulated stablecoins, mirroring similar decisions in other countries like the U.S. and South Korea.