Bank of England Governor Denies Farage Lobbying Swayed CBDC Policy

Farage, who is resigning as an MP amid the investigations, had met with Bailey in September. During the meeting, Farage reportedly urged the Bank to abandon plans for a state-issued digital currency, which could impact Harborne's cryptocurrency holdings. Farage later stated he asked Bailey directly about the central bank digital currency plans, to which Bailey responded affirmatively.

Lobbyists for Tether, a cryptocurrency company part-owned by Harborne, have also opposed the Bank's digital currency plans, arguing it could reduce demand for Tether's stablecoins. Labour MP Joe Powell had requested details of Bailey's meeting with Farage, but the Bank declined to release the information under freedom of information laws.

In his letter, Bailey acknowledged that the Bank is regularly subject to lobbying and assured that such efforts are appropriately discounted. He confirmed that no policy changes were made as a result of Farage's interventions. However, the Bank did drop a proposed cap on stablecoin ownership after a consultation period, a move Farage claimed to have influenced.

Powell expressed satisfaction that Farage's lobbying attempt was unsuccessful and criticized Farage's perceived disregard for independent institutions. Phil Brickell, Labour chair of the parliamentary group on anti-corruption, has called for an investigation into whether Farage breached lobbying rules. The Bank of England continues to explore a potential central bank digital currency, the proposed “digital pound,” which remains in the design phase as policymakers assess its role in an increasingly digital economy. No decision has been made on whether to introduce a digital pound, with any launch requiring further analysis and public consultation. Earlier this year, the Bank launched a six-month pilot to explore how tokenized assets could be settled using central bank money.