Bank of England Governor Andrew Bailey Reassures Public on Cash Supply Amid Britcoin Fears

Bank of England Governor Andrew Bailey reassured the public that cash will continue to be supplied as long as people want it, amidst growing fears that the UK’s central bank digital currency (CBDC), Britcoin, could replace physical currency.

Speaking at the Group of Thirty’s 39th Annual International Banking Seminar, Bailey emphasized that the demand for cash is still strong, despite the increasing popularity of digital payments. This sentiment was echoed by Bank of England veteran Sarah Breeden, who emphasized the importance of ensuring that cash remains available as long as it is demanded.

The debate over the benefits and drawbacks of CBDCs has been ongoing for years, with supporters touting cost reduction and risk mitigation, while opponents express concerns over government surveillance and the potential replacement of cash.

While the Bank of England has been working on the design of a digital pound since January, Bailey remains cautious about the launch of a retail CBDC. He believes that a wholesale CBDC for banks could play a significant role in high-value payments and settlement systems.

Bailey also highlighted the importance of innovation in the digital payments sector, emphasizing the need for better systems, particularly in cross-border payments. He believes that providing CBDC innovation to the private sector will encourage commercial banks to modernize their digital payment systems.

Overall, Bailey’s remarks suggest that the Bank of England is taking a measured approach to the introduction of a CBDC, prioritizing the needs and preferences of the public while also recognizing the potential benefits of digital currency innovation.