The Bank of England's independence has been thrown into question with new revelations that Governor Andrew Bailey may have had a meeting delayed if he had known about Nigel Farage's £5 million gift from a crypto billionaire. The governor's admission comes as an investigation into the donation continues, sparking concerns about the influence of wealthy donors on policy-making.
Mr Bailey indicated that he would not have proceeded with the meeting in September 2025 if he had been aware of the investigation into the £5 million gift from Thailand-based investor Christopher Harborne. The Bank's proposed cryptocurrency regulations were discussed during the meeting, which took place months before the donation became public knowledge in April 2026.
Mr Bailey, who chairs the Financial Stability Board, stated that the undisclosed gift would have been a "material fact" in their judgment and may have led to a delay in discussing the policy. He defended the decision to proceed with the meeting, however, saying it was still necessary for the Bank to engage with leaders across the Westminster system without favouritism.
The meeting with Mr Farage reportedly focused on two key issues: the Bank's plans for a state-issued rival to stablecoins and proposals for a cap on individual holdings of stablecoins. Mr Harborne, whose estimated £18 billion fortune largely stems from cryptocurrency, has provided two-thirds of Reform UK's funding.
According to sources, Mr Farage pressed Mr Bailey to abandon the Bank's plans for a state-issued rival to stablecoins and to drop proposals for a cap on individual holdings. The Governor defended these policy adjustments, clarifying that it proved more practical to cap the total issuance of stablecoins rather than monitoring individual holdings.
The controversy surrounding the meeting has led to accusations that wealthy donors are exerting undue influence over policy-making. Mr Farage has since been reported to the standards commissioner over whether his lobbying of the Bank of England breached parliamentary rules. The incident has also sparked renewed debate about the role of the Bank and its governor in relation to politicians and the Westminster system.
Mr Bailey expressed amusement at critics who initially labelled the Bank as 'dinosaurs' for its approach to crypto, but now praise its innovation. He believes the Bank is indeed encouraging innovation and doing the right thing in this evolving sector.