The digital pound would be a Bank of England digital form of cash. No decision has been made to introduce it, and any launch is still years away.
Last reviewed: 1 July 2026
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MONEY GUIDES |
The digital pound is a proposed digital form of cash that would be issued directly by the Bank of England, alongside physical banknotes rather than replacing them. No decision has yet been made on whether to introduce it.
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KEY FACTS
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What the digital pound would actually be
The digital pound would be a direct claim on the Bank of England, denominated in sterling and held in a digital wallet provided by a private company such as a bank or payments firm, rather than an account held directly with the Bank itself. It is intended to work alongside cash and existing bank deposits, not replace them.
Digital pound project timeline
| Stage | Status | Timing |
|---|---|---|
| Consultation | Complete | Closed 30 June 2023, response published Jan 2024 |
| Design phase | In progress | Runs through 2026 |
| Blueprint and assessment | Expected | Later in 2026 |
| Decision on Build Phase | Not yet made | Expected late 2026 |
| Possible launch | Not confirmed | Earliest second half of the 2020s |
Why holding limits matter
Bank of England modelling has examined how large deposit outflows from commercial banks could be if individuals moved money into digital pounds during a stress event. Under a scenario with no holding limits, the Bank estimated liquidity needs could rise to around £250 billion, compared with roughly £112 billion if limits were set at £20,000 per person, which is why holding limits remain central to the design.
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Estimated liquidity need in a severe stress scenario No holding limits: 100% With a £20,000 per-person limit: 45% |
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Worked Example: What this would mean day to day If introduced, a person could hold digital pounds in a wallet app provided by their bank or another approved firm, and spend them in shops or online in much the same way they use a debit card today, but with the underlying money being a direct claim on the Bank of England rather than a commercial bank deposit. |
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This article is general information, not financial or legal advice. Rules and limits can change: always check the current position with the regulator or scheme concerned before relying on any figure here. |
Will the digital pound replace cash?
No, the Bank of England has stated it will maintain access to cash for as long as the public demands it, and the digital pound is intended to sit alongside cash, not replace it.
Would I have an account directly with the Bank of England?
No, access would be through a digital wallet provided by a private company, not a direct account with the Bank itself.
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