While the Bank of England continues to pour millions into developing a digital pound, a former insider has blasted the project as nothing more than an expensive vanity exercise. Neil Record, who once worked as an economist for the central bank, didn’t mince words when labeling the so-called “Britcoin” a “white elephant” with no real public demand.
The Bank has already burned through £24 million researching this digital currency. For what? A solution in desperate search of a problem, apparently. Record suggests the institution might be more motivated by its own financial interests than any genuine public need.
Britain’s financial landscape already offers plenty of digital payment options. Consumers aren’t exactly begging for another one. Meanwhile, cash usage has plummeted from 51% of transactions in 2013 to a measly 12% in 2023. The writing’s on the wall for physical money, with or without a fancy new digital alternative.
Privacy concerns loom large over the project. Critics worry the digital pound could enable unprecedented government surveillance of citizens’ spending habits. Sure, officials promise privacy protections, but skeptics remain unconvinced. According to the Bank’s design principles, there would be privacy safeguards to prevent government access to personal data. Big Brother with a banking license? No thanks.
The banking sector isn’t thrilled either. If deposits shift from commercial banks to digital pounds, their ability to lend could take a serious hit. Cybersecurity presents another massive challenge. Unlike decentralized cryptocurrencies, this potential CBDC would require strong encryption and constant monitoring to protect users’ funds. One successful hack could devastate public trust in the entire system.
Meanwhile, other nations race ahead with their own digital currencies. China’s digital yuan is rolling out aggressively. The European Central Bank pushes forward with a digital euro. It’s a global financial arms race with no clear finish line.
The Bank of England insists the digital pound would complement—not replace—existing payment methods. But with declining cash use and thriving private digital options, Record’s criticism hits home. Even Bank of England Governor Andrew Bailey has admitted that the project is not a must-have initiative.
Twenty-four million pounds spent, and still no compelling answer to one simple question: Why bother?
