
Governor Bailey is wrong: We should embrace the digital pound
More than 100 countries are looking at the creation of their very own digital currencies. China already has one. The EU is developing a digital euro at pace. But the Bank of England? It seems to be tacking the opposite way to the rest of the world.
Andrew Bailey told MPs on the Treasury Committee that he would need 'a lot of convincing' to greenlight a launch, which the Bank has already said couldn't happen until sometime in the 'second half of the current decade' anyway.
Is this an opportunity missed? Even a case where the governor's conservatism threatens to leave Britons in the digital dark ages?
First off, I should explain what the digital pound actually is. Digi-pounds (that's not the official name; I'm not sure we have one yet) would be currency issued by the Bank that could be stored in a digital wallet provided by a company like, say, Apple. This would allow you to pay for things directly, without the need for the card you currently have to have set up to use Apple Pay. People could also pay you by the same means. PS, Apple CEO Tim Cook isn't paying either me or The Independent for the mention. I'm using Apple Pay as an example because it's a service I use.
Bailey is distinctly unimpressed with the idea of this new form of money. His preferred option is to help the market improve digital payment tech, which he said could deliver 'huge benefits'. Fraud reduction, lower costs, faster payments to SMEs, which at this point are probably saying chance would be a fine thing.
"That's a sensible place to do it because that's where most of our money is," the governor opined. But here's an idea: why not simply do both? Is that really so hard? Or is the Bank yet again in 'can't do' mode?
It is true that there are legitimate concerns about digital currencies. Sceptics worry about vulnerability to hacking. Fears have also been expressed about their making it easier to launder money, even to facilitate terrorist financing. Criminals took up Bitcoin with alacrity. Lately, they have favoured so-called ' stablecoins ', the value of which are linked to an underlying commodity or an existing currency such as the dollar.
On the flip side, some critics have voiced fears about digital currencies being used to facilitate government snooping. This has been a big concern with the Chinese version given the obsessive interest in what its citizens do, say and even think of that country's government.
But every new technology comes with pluses and minuses. It would be better for Bailey to accept that and roll with the punches. Bitcoin and its ilk already have a legion of fans in this country. If people like the concept of central bank issued digital currencies, there would theoretically be nothing to stop them from using digital euros if and when they arrive. There are already outlets in London that accept the paper equivalent (and dollars and yen while we're at it). Here's a potential selling point for your business: 'We accept the digital euros!'
Right now, the central bank looks flat-footed, a very obvious laggard, largely thanks to the conservatism of the governor.
I suspect some of Bailey's caution can be tracked back to his time at the head of the Financial Conduct Authority, a fairly thankless, if well remunerated, task at the best of times. Its CEO tends to get the blame for everything and the credit for nothing.
Launching a new form of money is bound to create challenges and it will once again be Bailey's head on the block if something goes wrong.
There have lately have been suggestions that the Bank could cease or at least shelve the work it has been doing on a digital pound. That would be a mistake. Digital currencies are coming. The Bank should accept that and prepare for the future. The governor badly needs to pull his legs out of the mud in which they're stuck.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
24 minutes ago
- Reuters
UK house prices rise by the most in six months in July, Halifax says
LONDON, Aug 7 (Reuters) - British house prices rose by the most in six months in July when they increased by a slightly faster than expected 0.4% from June, according to figures from mortgage lender Halifax that add to signs of a stabilisation in the housing market. Economists polled by Reuters had expected prices to rise by 0.3% in month-on-month terms after a 0.1% gain in June. Halifax said on Thursday house prices were 2.4% higher compared with July last year, slowing from June's 2.7% increase. Britain's housing market has settled after a rush to beat the expiry in April of a tax break for some home buyers which depressed sales immediately after the deadline. "Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving," Amanda Bryden, Halifax's head of mortgages, said. "We expect house prices to follow a steady path of modest gains through the rest of the year," she said. The Bank of England is widely expected to cut its main interest rate to 4% from 4.25% later on Thursday but the outlook for further reductions in borrowing costs is unclear due to persistent inflation pressures, even as the jobs market cools. Rival lender Nationwide said last week its measure of house prices rose by 0.6% in July compared with June.


BBC News
24 minutes ago
- BBC News
Warwickshire PCC wants new guidance after 'cover-up' claims
A Police and Crime Commissioner (PCC) has pressed the Home Secretary for an urgent update on what information forces should give to the public after allegations that authorities tried to cover up alleged offences by asylum comes after two men reported to be Afghan asylum seekers were charged following alleged rape of a 12-year-old girl in PCC Philip Seccombe is calling for fresh national guidance to be issued after police were accused of withholding their immigration status."It is very easy to criticise and suggest that the balance of disclosure hasn't been correct, but it is much harder to take these decisions on the ground," the PCC said. "Like all forces, Warwickshire Police finds itself in a difficult position of trying to carefully balance the legal safeguards which protect the integrity of the judicial process, while maintaining public order and simultaneously ensuring that public confidence is maintained through transparency and honesty."Currently police forces are in an invidious position when deciding what can and should be disclosed in sensitive cases, given that the national guidance is silent on both the ethnicity and immigration status of suspects."Two men have appeared in court charged in connection with the rape of the 12-year-old girl in Mulakhil faces two rape charges, while Mohammad Kabir is accused of kidnap, strangulation and aiding and abetting the rape of a girl aged under County Council leader George Finch accused Warwickshire Police and the Home Office of covering up their immigration status. On Wednesday, Home Secretary Yvette Cooper said police should reveal more information about suspects, and that guidance to police was already being looked she added it was an "operational decision" for forces and the Crown Prosecution Service over what information to said: "However, we do think that the guidance needs to change, the College of Policing is already looking at this, and Home Office officials are working with the College of Policing."The Nuneaton case has led to fresh pressure on police over the information they make Southport atrocity committed by Axel Rudakubana in July last year was marked by a focus on the suspect's ethnicity and immigration status, with false rumours spreading online that he was a Muslim asylum seeker, fuelling riots after the added: "It is imperative that police forces have revised guidance as soon as possible, so everyone has the clarity needed on what information will be released, when it will be released and by whom, for any incidents going forward." Follow BBC Coventry & Warwickshire on BBC Sounds, Facebook, X and Instagram.


The Independent
25 minutes ago
- The Independent
Transfer news live: Arsenal's Eze bid, Man Utd close on Sesko, Liverpool given boost for Isak move
Arsenal are preparing to bolster their forward line further by signing Crystal Palace 's Eberechi Eze. Palace want a fee in excess of £60m and the Gunners are on the verge of submitting an official. Benjamin Sesko wants to move to Manchester United despite RB Leipzig accepting an offer from Newcastle for the 22-year-old striker. The Premier League clubs are battling to sign a No.9 but the Old Trafford hierarchy are confident they can secure Sesko's signature despite a lack of Champions League football. Newcastle also have issues with Alexander Isak. The 25-year-old has been trying to force a move away from the club amid interest pursuit from Liverpool but the Magpies want a huge fee, having rejected Liverpool 's first bid of £110m. Elsewhere, Liverpool have agreed to sell Darwin Nunez to Saudi Arabian club Al Hilal which should open up funds to purchase Isak if they are willing to match Newcastle's valuation and Ruben Dias is close to agreeing a new contract with Manchester City while Nicolas Jackson is set to leave Chelsea this summer. Good morning! Welcome to The Independent's transfer blog. We'll have all the latest comings and goings from the Premier League and more throughout the day. Mike Jones7 August 2025 07:26 Alexander Isak forced to train alone at Newcastle amid Liverpool transfer links Newcastle striker Alexander Isak was told he must train away from the Newcastle squad as uncertainty over his future continues. The 25-year-old Sweden international was told to report for training on Wednesday but only after the rest of the squad had left. Isak did not travel with his team-mates on their pre-season trip to Singapore and South Korea, ostensibly because of a minor thigh injury, after Liverpool, who subsequently tabled a £110million bid for him, let it be known they remained interested in acquiring his services. Alexander Isak forced to train alone at Newcastle amid Liverpool transfer links Isak was told to report to training at Newcastle after the rest of the squad had gone home Chris Wilson7 August 2025 07:00 Darwin Nunez on verge of Liverpool exit as striker faces decision Liverpool are close to agreeing a deal to sell Darwin Nunez to Saudi Pro-League side Al-Hilal for an initial £46.2m. However, they are waiting to see if the striker will agree to leave Anfield after a three-season spell. Nunez also attracted interest from AC Milan but there were doubts if the Serie A side could meet Liverpool's asking price, whereas Al-Hilal are willing to pay a fee that could rise to £56.6m, including add-ons. More from senior football writer Richard Jolly: Darwin Nunez on verge of Liverpool exit as striker faces decision over future Darwin looks set to depart Anfield this summer after the arrival of young striker Hugo Ekitike and with the club chasing Newcastle's Alexander Isak Chris Wilson7 August 2025 06:30 Everton approach Man City about signing Jack Grealish on season-long loan deal Everton have approached Manchester City about the possibility of taking Jack Grealish on loan for the season. Grealish, 29, was stuck on the fringes of City's squad last season and his prospects look no brighter after a summer in which the talented 21-year-old French midfielder Rayan Cherki joined Pep Guardiola 's squad. Guardiola left Grealish out of his selection for the recent Club World Cup after coming to a mutual agreement with the winger that he needed a break. Everton approach Man City about signing Jack Grealish on season-long loan deal Everton have made initial enquiries about taking Grealish on loan after sealing the transfer of Kiernan Dewsbury-Hall from Chelsea Chris Wilson7 August 2025 06:00 Rio Ngumoha: Get to know Liverpool's teenage sensation ready to star in Premier League It is quite the statement to say that, amid a £269m outlay to bring in players with the quality of Florian Wirtz, Jeremie Frimpong and Hugo Ekitike, Liverpool's most exciting prospect this season comes in the form of a developing teenage striker. Yet that is the building hype concerning 16-year-old forward Rio Ngumoha and the quality his possesses at such a young age. Then again, hype is one thing but performing on the pitch is another and in this arena Ngumoha is showing why football fans are getting excited about his future. On Monday 4 August, Liverpool played two pre-season games against Athletic Bilbao at Anfield. The games had different starting XIs with a mix of senior players and potential first team starters combining with fringe members of the squad in order to give Arne Slot a better feel for how his players are coping ahead of the start of the new season. Rio Ngumoha: Get to know Liverpool's teen sensation ready to star in Premier League The 16-year-old has lit up Liverpool's pre-season and is being backed to break into the first team this year Chris Wilson7 August 2025 04:00 Ekitike, Wirtz, Kerkez and Frimpong make Anfield debuts to reveal a new side to Arne Slot's Liverpool Anfield got its first glimpse of what the best part of £300m gets you. Quite a lot, it seems. Which, given the numbers involved, it really should. But the Anfield bows of five lavish arrivals offered an insight into Arne Slot 's remodelled Liverpool. The goals came from the old, with Mohamed Salah and Cody Gakpo scoring to defeat Athletic Club 3-2, the intrigue from the new. Giorgi Mamardashvili, Jeremie Frimpong, Milos Kerkez, Florian Wirtz and Hugo Ekitike made Anfield bows, albeit in an unofficial outing and after each has featured further afield in preseason. Even as the £110m bid for Alexander Isak indicated Liverpool did not necessarily intend their business to stop with those five, it is half a team. Jurgen Klopp called the side he left Liverpool 2.0. Perhaps this is 2.0 for Slot's Liverpool, significantly different to the title-winning outfit. Ekitike, Wirtz, Kerkez and Frimpong make Anfield debuts to reveal a new Liverpool Goalkeeper Giorgi Mamardashvili also played in the friendly win against Athletic Club ahead of the Community Shield on Sunday Chris Wilson7 August 2025 02:00 Liverpool and England U21 midfielder Tyler Morton joins Lyon Liverpool have sold midfielder Tyler Morton to Lyon for £15m, meaning they have brought in almost £150m in transfers this summer. The England Under-21 international, who made 14 first-team appearances for Liverpool, joined the Ligue Un club after passing a medical. Liverpool also have a 20 percent sell-on clause for Morton if the 22-year-old, who helped England win the European Under-21 Championships in June, continues to improve. Liverpool and England U21 midfielder Tyler Morton joins Lyon The 22-year-old was part of England's victorious Under-21 side at this summer's Euros Chris Wilson7 August 2025 00:00 John Stones fires warning to Manchester City's Premier League rivals John Stones is convinced Manchester City have the 'fire in our bellies' to regain their Premier League title. City surrendered the crown they won in the previous four seasons to Liverpool during an underwhelming 2024-25 campaign. Defender Stones believes lessons have been learned and has detected a strong desire to put things right since the players have reported for pre-season training. John Stones fires warning to Manchester City's Premier League rivals Stones says City have a strong desire to put things right after a difficult 2024/25 campaign Chris Wilson6 August 2025 23:00 Newcastle United transfer news: Benjamin Sesko, Yoane Wissa, Marc Guehi and more Having ended their trophy drought with Carabao Cup success last season, Newcastle United now have work to do in the transfer market. With a return to the Champions League, the Magpies need to strengthen their squad to compete at the highest level, but despite boss Eddie Howe making it known that he is looking to work fast this summer, Newcastle have missed out on several of their top targets so far. Benjamin Sesko is the latest high-profile target to opt against a move to St James Park, while key striker Alexander Isak remains linked with a move to Premier League champions Liverpool. Newcastle have been without any major recruits over the past two seasons due to PSR rules, and started the summer with a big move for Anthony Elanga – with the Nottingham Forest winger joining in a deal worth £55m – but have been thwarted in attempts to sign Matheus Cunha, Bryan Mbeumo and James Trafford since then too. And it means that there are a big three weeks ahead for the Magpies ahead of the start of the 2025/26 season and the transfer deadline on 1 September, with the club needing to strengthen in several key positions. Here's everything you need to know about Newcastle United 's summer transfer plans: Chris Wilson6 August 2025 22:30 Newcastle make offer for Milan defender Newcastle have made an offer of €30m for AC Milan defender Malick Thiaw, according to Sky in Germany. Sources in Italy say the first bid for the 23-year-old has been rejected though, and it is not known whether the Magpies will return for the defender. Chris Wilson6 August 2025 22:00