Key facts
- Bank of England Governor Andrew Bailey stated he can identify and discount lobbying efforts.
- Bailey confirmed a meeting with Nigel Farage regarding cryptocurrency policy occurred at the request of Richard Tice.
- The meeting took place amid scrutiny over undeclared funding for Farage's Reform UK party from crypto tycoon Christopher Harborne.
- Bailey assured that no policy changes resulted from Farage's intervention.
- The Bank of England recently dropped a proposed cap on stablecoin ownership after a consultation period.
Bank of England Governor Andrew Bailey has stated he is capable of identifying and discounting lobbying efforts, in response to pressure from Nigel Farage concerning cryptocurrency policy. Bailey's comments came in a letter seen by The Guardian, following Farage's decision not to disclose a £5m gift from crypto tycoon Christopher Harborne, which has led to a parliamentary standards investigation.
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.