• Bank of England governor Andrew Bailey expressed skepticism regarding the need for a digital pound, citing that there is already a wholesale central bank money settlement system with an upgrade.
• The Eurogroup has recently backed further work on a digital euro, recognizing that the introduction of a CBDC requires further discussion on a political level.
• Former BoE adviser Tony Yates argued in an opinion piece in the Financial Times that the costs and the risks associated with the development of CBDCs are not fully understood yet.

Recently, Bank of England governor Andrew Bailey has expressed skepticism regarding the need for a digital pound. This follows new CBDC developments in the eurozone and comments from a former BoE adviser on the costs and risks of creating a CBDC.

Mr. Bailey highlighted that there already is a wholesale settlement system with a major upgrade, meaning that there isn’t the need for a digital pound at the moment. He also noted that there are no plans to abolish cash for retail use, and that before any drastic changes are made, the problem needs to be fully understood.

The Eurogroup, made up of finance ministers from the eurozone countries, have recently published a statement backing further work on a potential digital euro being studied by the European Central Bank. They have recognized the many issues that come with introducing a CBDC, such as environmental effects, privacy, financial stability and other matters.

Tony Yates, a former BoE adviser, wrote an opinion piece in the Financial Times in which he argued that the costs and risks associated with the development of CBDCs are not yet fully understood. He believes that before any decisions are made, more research should be conducted on the matter.

Overall, the Bank of England still remains reticent about the need for a digital pound, citing issues with technology and the idea of it being introduced. Meanwhile, the Eurogroup has backed further work on a digital euro, but has noted the many issues that come with it. Finally, former BoE adviser Tony Yates has highlighted that the costs and the risks associated with the development of CBDCs are not yet fully understood.