The Governor of the Bank of England, Andrew Bailey, has confirmed that the institution resisted lobbying pressure from Nigel Farage regarding its cryptocurrency policy. Mr Bailey stated that he is “able to spot” and appropriately discount such interventions, particularly concerning proposals for a UK central bank digital currency, often dubbed “Britcoin”. This revelation comes as Mr Farage faces a significant political crisis, having announced his resignation as an MP amidst parliamentary standards investigations into undeclared financial gifts.
Mr Farage's lobbying efforts came to light after a private meeting with Mr Bailey in September, where he reportedly pressed the Governor to abandon plans for a state-issued digital currency. This policy could potentially affect the financial interests of Christopher Harborne, a Thailand-based crypto tycoon and significant donor to Reform UK, whose company, Tether, issues a widely traded cryptocurrency. Mr Harborne's £5 million gift to Reform UK and its predecessor, the Brexit Party, was not initially disclosed by Mr Farage, leading to one of the ongoing investigations.
In a letter to Labour MP Joe Powell, seen by The Guardian, Mr Bailey stated, “As a general point, I recognise that we are, by the nature of the Bank’s role, regularly subject to lobbying. I can assure you that we are able to spot this and appropriately discount it.” He further clarified, “I am happy to confirm that no policy changes have taken place as a result of interventions by Mr Farage.” This statement directly addresses concerns about potential undue influence on the Bank's independent policy-making process.
While the Bank of England maintains its independence, it did recently drop a proposed cap on the amount of stablecoins individuals in the UK could own, following a public consultation. Mr Farage had previously claimed credit for this decision, stating he urged Mr Bailey to reconsider. However, the Bank's updated policy on stablecoins, issued last month, confirms it is still actively considering issuing its own digital currency, indicating no fundamental shift in its broader strategy despite Mr Farage's public opposition.
Mr Farage's announcement of his resignation as an MP, coupled with his call for a 'people versus the establishment' by-election, has been met with a boycott from major political parties including the Conservatives, Labour, the Liberal Democrats, and the Green Party. They accuse him of attempting to deflect attention from the serious financial allegations he faces, which also include undeclared support from convicted fraudster George Cottrell. The ongoing scrutiny of Mr Farage's financial dealings and his interactions with independent institutions like the Bank of England continue to be a focal point in UK politics.