Key facts
- Nigel Farage met with Bank of England Governor Andrew Bailey to discuss plans for a central bank digital currency.
- Farage's opposition to the 'Britcoin' proposal is linked to potential financial implications for his major donor, Christopher Harborne, who is invested in Tether.
- Harborne has donated millions to Farage's Reform UK party and previously gifted him £5m.
- Tether, a major issuer of stablecoins, could see reduced demand if the Bank of England launches its digital currency.
- Farage has framed his opposition to central bank digital currencies as a campaign for freedom from state overreach, citing concerns about digital ID systems.
Nigel Farage, leader of the Reform UK party, has actively sought to obstruct the Bank of England's proposals for a central bank digital currency, often referred to as 'Britcoin'. This opposition appears to be closely linked to the financial interests of Christopher Harborne, a billionaire who has provided substantial funding to Farage's party and made a significant personal gift to him. Harborne is a major investor in Tether, a company that issues the world's most widely traded stablecoin.
Farage's efforts include a private meeting with Bank of England Governor Andrew Bailey in September, where he urged the governor to abandon the digital currency plans. Footage from a later crypto event shows Farage stating he would be 'prepared to go to prison' to prevent the implementation of a state-run digital currency, which he frames as a fight for freedom against an overreaching state and a potential threat due to digital ID integration. However, critics suggest his stance is influenced by Harborne's significant stake in Tether, whose profits could be diminished by reduced demand for stablecoins if a central bank digital currency is introduced.
Tether's stablecoins, pegged to government-issued currencies, are popular for their ease of exchange and anonymity, and have been used by individuals and groups involved in sanctions evasion and illicit activities. The Digital Currencies Governance Group (DCGG), an industry body that includes Tether among its members, has also submitted concerns to the Bank of England, arguing that a central bank digital currency could stifle growth in private stablecoins and advocating for a regulated market for them instead.
Harborne, described by his lawyers as a minority shareholder in Tether, has also engaged in lobbying efforts in Brussels regarding crypto policy. Farage has publicly promoted London as a global trading center for cryptocurrencies and stablecoins. Bank of England officials have stated they are considering various options regarding stablecoins following consultations, acknowledging Farage's differing views.