Britons could be willing to adopt a digital pound – but only if it is well-incentivised and effectively communicated, according to a new report.
The study, written by AMBS academics along with colleagues from the University of Houston and Georgetown University, draws on a nationally representative survey of 10,000 UK adults, the largest of its kind exploring public attitudes to digital currency. Outcomes measured included willingness to adopt, intended use cases across different types of transactions, propensity to substitute for existing payment methods, and share of bank deposits respondents would transfer to a digital pound.
The findings show that that consumers are cautiously open to the concept, with 40% rating their willingness to use it as four or five out of five. However, the research makes clear that curiosity alone will not be enough to encourage consumers to ditch their current payment methods, with incentivisation essential to drive wider adoption.
Nuanced
Co-author Professor Markos Zachariadis, Professor of FinTech and Information Systems at Alliance Manchester Business School, said: “Our findings show that public attitudes towards a digital pound are nuanced but far from fixed. People are not rejecting the idea outright. Rather, their willingness to adopt depends on how well the benefits are articulated and how clearly the currency fits into their everyday financial lives.
“What’s particularly interesting is how different demographics respond to the technology. Identifying and tackling these disparities will be key in developing a digital currency system that works for everyone.”
Findings
When participants were presented with versions of the digital pound that offered benefits including discounts or the opportunity to earn interest, willingness to use the currency rose by 6% overall, and by as much as 8% among more sceptical consumers.
Trust also emerged as another decisive factor. Some 37% of respondents cited security concerns as their primary barrier to adoption, while respondents that expressed higher trust in institutions such as the Bank of England and the UK government were substantially more willing to adopt. Underscoring this, 20% of respondents stated that they still do not understand what the digital pound is.
Age difference
Notably, trust for digital currency varies significantly by age, with interest peaking among people in their mid-30s, who score on average around 3.8 out of 5 in willingness. Younger adults aged 18–22 are less enthusiastic, averaging around 3.4, while the steepest drop appears among older respondents with those aged 68 and above reporting an average willingness of just 2.3.
To combat this, the report’s authors have called for policymakers to prioritise practical, transparent communication about how a digital pound could protect privacy and fit safely and effectively within everyday financial life.
Opportunity
Co-author Dr Andrew Buckley, Honorary Professor at Alliance Manchester Business School, said: “The UK has a window of opportunity to foster a dynamic and competitive market in digital money with broad consumer adoption, capable of stimulating innovation, competition, and economic growth. This aligns with the government’s position that Britain can lead the world in digital asset adoption, as recently highlighted by Economic Secretary to the Treasury Lucy Rigby.
“Our research shows, however, that momentum will depend on targeted government policy incentives and clear public communication that translates innovation into practical consumer benefits. With the right incentives to kick-start adoption, digital money can become a trusted extension of how people already manage their finances, supporting the UK’s ambition to combine regulatory leadership with real-world consumer take-up and sustained economic growth.”
Read the full report 'The Design of Central Bank Digital Currencies and Consumer Demand' >>