LONDON — Andrew Bailey, Governor of the Bank of England, met with Reform UK leader Nigel Farage in September at Threadneedle Street. Bailey stated the meeting was arranged at the request of Richard Tice, a Reform UK MP and deputy leader.

During the meeting, Farage lobbied against the Bank of England's plans for a central bank digital currency and a proposed cap on stablecoin ownership. Farage said he asked Bailey, "Are you still progressing your plans for a British central bank digital currency?" to which Bailey reportedly answered, "Yes." Farage also told Bailey, "Listen mate, you're being a dinosaur."

In a letter, Bailey confirmed that no policy changes resulted from Farage's interventions, stating, "I can assure you that we are able to spot this and appropriately discount it." He added, "I am happy to confirm that no policy changes have taken place as a result of interventions by Mr Farage." Bailey also wrote, "We are, by the nature of the Bank's role, regularly subject to lobbying."

The Bank of England later dropped the planned cap on stablecoin ownership following a consultation. The Bank also issued an updated policy on stablecoins last month and stated it was still considering issuing its own digital currency. Farage said he would be "prepared to go to prison" to thwart the Bank's plan for a digital currency.

Labour MP Joe Powell wrote to Bailey seeking details of his meeting with Farage. The Bank of England declined to release further details of the meeting under freedom of information law. "I'm pleased the governor of the Bank of England has confirmed Nigel Farage's brazen lobbying attempt on behalf of crypto billionaires was unsuccessful," Powell said.

Farage has promoted various cryptocurrencies for a fee on the video site Cameo. Christopher Harborne, a crypto tycoon based in Thailand, is a part-owner of Tether, an El Salvador-based company that issues a widely traded cryptocurrency. Lobbyists for Tether wrote to the Bank of England arguing against its plans for a "Britcoin." Farage said Harborne asked for nothing in return for providing two-thirds of the funding received by Reform UK and its predecessor, the Brexit party. Harborne's lawyers said, "Mr Harborne will not comment on fantasy."

Why It Matters

This event details an instance of lobbying directed at the Bank of England concerning digital currency policy. The meeting occurred as the Bank of England moved forward with its consideration of a central bank digital currency and a proposed cap on stablecoin ownership. The governor's response indicates that such interactions are routine, but the Bank maintains policy independence.