The Bank of England has called on the banking industry to accelerate innovation in payments, while assessing the need for a central digital currency (CBDC).

The Bank of England (BoE) has urged UK banks to innovate in payments, minimizing the need for a central digital currency (CBDC). The CBDC would provide security for users, but the BoE is open to dropping the idea if the private sector develops effective solutions. The CBDC project is currently in the design phase, and BoE officials have expressed concern about declining global interest in state-backed digital currencies. The UK government has clarified that a digital pound would be a private but not anonymous currency, allowing suspicious transactions to be monitored.