The Bank of England has begun trialing a “digital pound” in several cities including London, Manchester, and Birmingham, marking the country’s first major step toward a central bank digital currency (CBDC). The pilot aims to test the infrastructure, security, and usability of the digital pound for everyday transactions.
The move follows similar experiments in China and the European Union. British citizens in trial zones will use a mobile wallet to make secure payments at participating shops and service providers. The government insists that the digital pound will coexist with traditional cash, aiming for inclusion rather than replacement. Critics, however, warn about data privacy and surveillance risks.
India and Bangladesh, both exploring their own CBDCs, are closely watching the UK’s rollout to guide their own digital finance roadmaps.
