BoE Governor Andrew Bailey recently suggested that improvements in commercial payment systems may eliminate the need for a CBDC, which is a major shift from the institution's earlier pro-CBDC stance. The project also faced strong public backlash, privacy concerns, and slow progress, leaving the UK trailing behind other nations in CBDC development. Meanwhile, UK authorities seized seven illegal crypto ATMs in London and arrested two people in a crackdown on unregistered operations. Similar concerns are being addressed in the US, where lawmakers are pushing for consumer protections and regulations due to the spike in crypto ATM-related scams.
CBDC Support Fades in the UK
Britain's central bank is reportedly reconsidering its plans for a central bank digital currency (CBDC), casting doubt on the future of the so-called digital pound. According to a Bloomberg report citing anonymous sources, the Bank of England (BoE) is facing increasing skepticism about whether a consumer-facing digital currency will actually provide tangible benefits to the financial system or the institution itself.
BoE officials are said to be encouraging commercial banks to focus on improving existing payment systems rather than relying on the creation of a new digital form of money. Governor Andrew Bailey explained during a Treasury Committee hearing on Tuesday that if commercial innovations in payments prove successful, there may be no compelling reason to issue a digital pound. He said, “If that’s a success, I question why we need to introduce a new form of money.”
This apparent shift is a retreat from the BoE’s earlier position. In 2023, Bailey stated that a digital pound would "likely" be needed in the future, mostly due to strong institutional support at the time. However, progress has been slow.
The Atlantic Council’s CBDC tracker indicates that the UK is still in the development phase and is lagging behind other nations in its CBDC rollout. The project also faced a lot of public pushback, with over 50,000 largely critical responses to a request for public feedback. Concerns about consumer privacy, potential bank runs during crises, and threats from foreign or tech-backed stablecoins further complicated the digital pound’s prospects.
The broader international momentum behind CBDCs also seems to be mixed. In the United States, lawmakers recently passed the Anti-CBDC Surveillance State Act, effectively banning any Federal Reserve efforts to develop a CBDC without explicit congressional approval. Some critics, including Republican Congresswoman Marjorie Taylor Greene, argue that stablecoin regulation bills like the GENIUS Act could still allow for a CBDC to emerge indirectly through privately issued tokens.
Global CBDC progress (Source: Atlantic Council)
Despite the hesitation in the UK and US, global interest in CBDCs is strong. According to the Atlantic Council, three countries—The Bahamas, Jamaica, and Nigeria—already launched digital currencies. Meanwhile, 49 countries are in the pilot phase, 20 are actively developing their projects, and 36 are still in the research stage.
UK Cracks Down on Illegal Crypto ATMs
Authorities in the UK also recently seized seven cryptocurrency ATMs and arrested two people in southwest London on suspicion of money laundering and operating an illegal crypto exchange. The operation was led by the UK Financial Conduct Authority (FCA) in collaboration with the Metropolitan Police.
(Source: FCA)
Since January of 2021, all crypto-related services in the UK are required to register with the FCA and comply with anti-money laundering regulations. Currently, no crypto ATMs are legally operating in the country, and using or managing one without proper authorization is considered a criminal offense.
Therese Chambers, the executive director of enforcement and market oversight at the FCA, explained that any illegal operation of crypto ATMs or exchanges will result in serious consequences. She warned that using these unregistered machines not only violates the law but also contributes to criminal activity. The suspects in the recent enforcement action were released under investigation as inquiries continue.
Across the Atlantic, US lawmakers are also responding to the growing risks associated with crypto kiosks. In Wisconsin, a new bill that was introduced by state Senator Kelda Roys and Representative Ryan Spaude seeks to establish regulations to protect consumers from fraud, hidden fees, and scams linked to digital currency machines. The proposal was made in response to a surge in crypto-related scams across the state, which pushed legislators to call for transparency, consumer education, and stricter legal protections.
Phishing scams are still one of the most common forms of fraud involving crypto ATMs, where victims are deceived into sending digital currency to fraudsters posing as legitimate authorities. According to the FBI, these kinds of scams resulted in approximately $247 million in losses in 2023 alone.
To stop this trend, lawmakers in Wisconsin are pushing for mandatory disclosures at kiosks and consumer protections. On a national level, Senator Dick Durbin introduced the “Crypto ATM Fraud Prevention Act” in February of 2025. The federal bill proposes measures like warning labels on machines, transaction limits for new users, and guaranteed refunds for scam victims who report incidents within 30 days.
Crypto ATM distribution (Source: Cryptoatmradar)
Currently, the United States hosts 78.4% of the world’s Bitcoin ATMs, according to data from Coinatmradar. As a result, this makes it a central focus in global crypto ATM oversight efforts.
