The Bank of England is contemplating abandoning its plans for a central bank digital currency (CBDC) known as the digital pound due to growing skepticism regarding its necessity and benefits. Governor Andrew Bailey has expressed a preference for private payment innovations and indicated that he requires substantial evidence to support the introduction of a state-backed digital currency. The shift in stance follows earlier indications that a digital pound was likely essential for the future financial landscape. Concerns have been raised about privacy issues and the potential for destabilizing bank runs. The UK's progress in developing a CBDC has been slow compared to other countries, and there is significant public criticism, including over 50,000 responses against the initiative. In the US, similar sentiments are evident, with the House passing a bill to prevent the Federal Reserve from issuing a CBDC without congressional approval. Currently, only three countries have officially launched a CBDC, while numerous others are in various phases of research and development.

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