The Bank of England has revealed that Nigel Farage attempted to influence its digital pound policy through direct meetings, but these efforts did not alter the central bank’s approach. Governor Andrew Bailey, responding to Labour MP Joe Powell, emphasized that the bank detected such lobbying and maintained policy independence.
Statement follows closed-door meeting
Bailey’s remarks came in response to questions about a confidential September meeting with Farage at the Bank’s Threadneedle Street headquarters in London. The topics discussed included digital asset regulation and ongoing work on the proposed digital pound. Bank officials underscored that these interactions led to no change in existing strategy.
It was reported that Farage asked Bailey to halt the central bank’s digital currency project. Farage later said at a crypto industry event that he confronted Bailey directly about the digital pound. Bailey maintained that the Bank can distinguish external pressure and conducts decision making independently.
Andrew Bailey underscored that the Bank of England had identified lobbying attempts and kept its independent stance on the digital pound.
Debate over donations and funding intensifies
The controversy deepened as scrutiny of Farage’s financial backers intensified. Claims that Farage received around £5 million from Christopher Harborne, a businessman with links to stablecoin issuer Tether, increased political pressure. Tether is known for its critical perspective on central bank digital currencies.
This has reopened questions about Reform UK’s sources of funding. The political debate now focuses on any links between those opposing the digital pound and the party’s financial contributors.
Mini glossary: “CBDC” stands for central bank digital currency—a digital form of a nation’s official currency issued by its central bank, distinct from cryptocurrencies due to its centralized structure.
Digital pound research continues
The Bank of England is continuing its research into a potential digital pound, but a final decision on implementation has not yet been made. The institution believes further technical analysis and extensive public consultation are needed. Any rollout would require both government support and parliamentary approval.
Farage has long opposed central bank digital currencies, arguing they pose risks to individual freedoms. He often links the digital pound idea to the creation of digital identity systems. The Bank of England’s official recommendations, however, do not propose such integration.
The Tether side argues that a state-backed digital currency could undermine the private stablecoin market.
Heightened political scrutiny
Farage resigned from parliament this week but has continued to deny accusations related to his financial disclosures. Mainstream parties have said they will not field candidates in any potential by-election, increasing attention on Reform UK’s operations.
While a parliamentary standards inquiry is ongoing, Labour MPs have called for an investigation into whether Farage broke lobbying rules. Correspondence from Andrew Bailey has reinforced the Bank of England’s position that its cryptocurrency and digital pound policy remains free from political interference.
