The Bank of England has begun a new phase of engagement with businesses to assess how a digital pound could impact day-to-day commercial activity across the UK.
The central bank is launching a series of discussions aimed at identifying where a retail CBDC might create value for different types of organisations, and which features they view as most or least useful, claims Finextra.
The initiative comes as the Bank continues its ‘design phase’, where it is working towards a clearer proposition for what a UK digital currency could look like.
Earlier this year, the Bank announced the creation of its Digital Pound Lab, a sandbox initiative designed to test API functionality, explore innovative use cases and assess potential business models. The Lab supports both PIPs and ESIPs as they experiment with hands-on scenarios that could underpin a future Britcoin. However, the Bank is now looking to broaden its evidence base by targeting firms that have not yet taken part in the Lab but are keen to evaluate digital pound applications.
The Bank says the upcoming case studies are intended to complement the Digital Pound Lab by enhancing its understanding of how different CBDC features could affect merchant adoption. Applications are open until 9 January 2026, with chosen participants expected to be notified later that month. Bilateral workshops will follow in February and March, providing the Bank with more detailed insights from a broad mix of industries.
The latest call for input comes at a time of renewed scepticism over the need for a digital pound. Reports in July suggested the central bank may pause or scale back its CBDC plans amid doubts over consumer benefits. Instead, it has been encouraging the banking sector to accelerate innovation within existing payment systems that might offer similar outcomes without launching a new central bank-issued digital currency.
International caution is also growing. Norway recently confirmed that while it is not currently recommending the introduction of a CBDC, it wants to remain prepared should future market conditions require one. “We will be ready to introduce a central bank digital currency if it becomes necessary to maintain an efficient and secure payment system,” Norges Bank governor Ida Wolden Bache said.
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