Bank of England Deputy Governor Sarah Breeden said at an event on the sidelines of the IMF and World Bank annual meetings that the UK may not need a retail digital pound quickly. She argued that sterling stablecoins from regulated firms and tokenised bank deposits could deliver similar benefits. She noted that central bank money's share of transactions has fallen to 8%. The Bank aims to finalise its code for systemic stablecoins by the end of 2026, with a temporary issuance cap of £40 billion.

What it means: The Bank of England's stance differs markedly from the ECB's, which is pressing ahead with the digital euro and a pilot programme. London is betting that a tightly regulated private sector can meet the demand for digital money, while the central bank modernises its own settlement system for round-the-clock operation. Europe, by contrast, believes that without public digital money payments will depend on American networks and dollar tokens. Breeden's remark that it would be madness for Britons to access innovation only through dollar stablecoins shows both sides worry about the same thing and simply choose different tools. For Greek businesses trading with the UK, the future may include settlement in sterling stablecoins, while the euro area will see a digital euro, bank tokens and euro stablecoins side by side. Payment software providers should design platforms that handle several forms of digital money at par, as Breeden herself describes. Interoperability will be the key technical challenge.

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