Bank of England Deputy Governor Sarah Breeden sees no immediate need to introduce a digital pound. Stablecoins and tokenized bank deposits could provide alternative forms of digital money. Th
The Bank of England is showing little urgency to introduce a digital pound, with Deputy Governor Sarah Breeden pointing to other emerging forms of digital money.
According to Bloomberg, Breeden believes stablecoins and tokenized bank deposits could offer alternatives to a central bank digital currency.
Her comments come as financial institutions continue exploring how blockchain technology could change the way money moves between consumers, businesses and banks.
A digital pound would be a form of central bank digital currency, commonly known as a CBDC, issued by the Bank of England.
Unlike private cryptocurrencies, it would represent money issued by the central bank.
However, Breeden’s remarks suggest that launching such a currency is not necessarily the only way to improve the UK’s digital payment infrastructure.
The discussion reflects a broader debate about whether central banks need to issue their own digital currencies when private-sector alternatives are developing.
One reason the digital pound may not require an immediate launch is the emergence of other digital payment technologies.
Stablecoins are cryptocurrencies designed to maintain a relatively stable value, often by tracking currencies such as the US dollar or British pound.
They can support digital transfers and payments, although their reliability depends on factors such as reserve backing, redemption arrangements and regulatory oversight.
Tokenized deposits work differently.
They represent commercial bank deposits using digital tokens, potentially allowing banks to transfer and settle funds through newer financial infrastructure.
Unlike a central bank digital currency, tokenized deposits remain liabilities of the issuing commercial bank.
Both approaches could help modernize payment systems without requiring the Bank of England to introduce a retail CBDC immediately.
However, these alternatives are not identical in terms of legal structure, risk or consumer protection
JUST IN: Bank of England’s Sarah Breeden sees no rush for a digital pound, citing stablecoins and tokenized deposits as alternatives, per Bloomberg. pic.twitter.com/8yBRoCizxg
— Cointelegraph (@Cointelegraph) October 13, 2026
Breeden’s comments suggest that the future of digital payments in Britain may involve several technologies rather than one government-issued solution.
The Bank of England has previously explored the possibility of a retail CBDC as part of its work on the future of money.
However, the latest remarks should not be interpreted as a formal cancellation of the project.
A decision to introduce a digital pound would require further policy development and consideration of its potential benefits and risks.
Meanwhile, stablecoins and tokenized deposits could continue gaining attention as financial institutions experiment with blockchain-based payment systems.
For consumers and businesses, the key questions will involve safety, accessibility, transaction efficiency and regulatory protections.
The development also highlights how central banks are evaluating their roles in an increasingly digital financial system.
For now, Sarah Breeden’s position indicates that the Bank of England sees no immediate rush to launch a digital pound, particularly while alternative forms of digital money continue to evolve.
