Design Phase still underway in 2026
The Bank of England (BoE) and HM Treasury are continuing to explore the potential introduction of a digital pound that could be used by households and businesses for everyday payments alongside cash and bank deposits. Whilst a final decision has yet to be taken, and any launch likely be several years away, the project is currently in its design phase, which runs through 2026. This work is focused on developing the potential technical and policy framework and assessing its benefits and risks for the wider payments ecosystem.
Recent commentary from the Bank has highlighted the role that new forms of digital money could play in the future of UK payments. In a speech on 2 February 2026, Deputy Governor Sarah Breeden emphasised that innovations such as a digital pound could support competition, resilience and innovation in retail payments, as the UK modernises its payments infrastructure.
The Bank is also continuing engagement with industry through initiatives such as the Digital Pound Lab, where firms are testing potential use cases and payment services. Insights from this work are expected to inform a detailed blueprint for the digital pound, which the Bank and HM Treasury have indicated will be published during the design phase. The government’s Payments Forward Plan, published in February 2026, confirms that this work will continue throughout the year before a decision is taken on the next stage of development.
For retailers, a digital pound could represent a new payment option within the UK payments landscape. The Bank has proposed a platform model in which private-sector firms provide wallets and payment services, meaning retailers would likely accept digital pound payments through existing payment providers and point-of-sale systems.
We have engaged closely in discussions on the future of digital payments, emphasising that any digital pound must deliver clear benefits for retailers and consumers, including interoperability with existing systems, strong consumer protection and the potential to support greater competition in payments.
Further clarity is expected as the Bank and HM Treasury continue their design work and publish more detailed proposals later in 2026.
