The Bank of England is showing little urgency to introduce a digital pound, with Deputy Governor for Financial Stability Sarah Breeden pointing to stablecoins and tokenized bank deposits as alternative forms of digital money that could emerge instead.

According to Bloomberg, Breeden believes these instruments could offer viable alternatives to a central bank digital currency. Her comments come as financial institutions continue exploring how blockchain technology could change the way money moves between consumers, businesses and banks.

Taken together, the remarks suggest the UK is weighing multiple approaches to modernizing payments rather than relying on a single government-issued solution.

A Digital Pound Is Not the Only Path

A digital pound would be a form of central bank digital currency, commonly known as a CBDC, issued by the Bank of England. Unlike private cryptocurrencies, it would represent money issued by the central bank.

The project has been in the works for some time: the Bank of England and HM Treasury ran a joint consultation on the digital pound in 2023 — an initiative often nicknamed "Britcoin" in press coverage — and said in January 2024 that a decision on whether to build it would follow a design phase, with any launch not expected before the second half of the decade. Against that backdrop, Breeden's remarks suggest that launching such a currency is not necessarily the only way to improve the UK's digital payment infrastructure. The discussion reflects a broader debate about whether central banks need to issue their own digital currencies when private-sector alternatives are developing.

Stablecoins and Tokenized Deposits Offer Alternatives

One reason the digital pound may not require an immediate launch is the emergence of other digital payment technologies.

Stablecoins are cryptocurrencies designed to maintain a relatively stable value, often by tracking currencies such as the US dollar or the British pound. They can support digital transfers and payments, although their reliability depends on factors such as reserve backing, redemption arrangements and regulatory oversight.

Tokenized deposits work differently. They represent commercial bank deposits using digital tokens, potentially allowing banks to transfer and settle funds through newer financial infrastructure. Unlike a central bank digital currency, tokenized deposits remain liabilities of the issuing commercial bank.

Both approaches could help modernize payment systems without requiring the Bank of England to introduce a retail CBDC immediately. However, these alternatives are not identical in terms of legal structure, risk or consumer protection. The UK has already started building rules around them: the Financial Services and Markets Act 2023 put fiat-backed stablecoin payments in scope of UK financial regulation, and the Bank has examined tokenized deposits as part of its work on new forms of digital money.

JUST IN: Bank of England's Sarah Breeden sees no rush for a digital pound, citing stablecoins and tokenized deposits as alternatives, per Bloomberg. pic.twitter.com/8yBRoCizxg

— Cointelegraph (@Cointelegraph) October 13, 2026

What This Means for the UK's Digital Pound Plans

Breeden's comments suggest that the future of digital payments in Britain may involve several technologies rather than one government-issued solution. The Bank of England has previously explored the possibility of a retail CBDC as part of its work on the future of money.

However, the latest remarks should not be interpreted as a formal cancellation of the project. A decision to introduce a digital pound would require further policy development and consideration of its potential benefits and risks.

Meanwhile, stablecoins and tokenized deposits could continue gaining attention as financial institutions experiment with blockchain-based payment systems. For consumers and businesses, the key questions will involve safety, accessibility, transaction efficiency and regulatory protections. Upcoming milestones in the digital pound's design work and in the UK's evolving stablecoin rulebook are likely to clarify how these different forms of digital money fit together.

The development also highlights how central banks are evaluating their roles in an increasingly digital financial system. The European Central Bank has been preparing for a possible digital euro, and surveys by the Bank for International Settlements have found the vast majority of central banks researching CBDC concepts, even though full retail launches remain rare. For now, Bre's position indicates that the Bank of England sees no immediate rush to launch a digital pound, particularly while alternative forms of digital money continue to evolve.