The Bank of England (BOE) is urging UK banks to expedite their digital payment solutions as cash use declines.
The BOE’s recent paper highlights the need for innovations that allow direct payments from bank accounts, bypassing credit and debit cards, to save time and costs for consumers and retailers.
The British central bank is developing a central bank digital currency (CBDC), with a decision expected by 2026.
Currently, most UK retail payments rely on private banks.
Sarah Breeden, BOE’s deputy governor for financial stability, emphasized the importance of innovation in the UK’s interbank payment systems to stay competitive globally.
