Andrew Bailey, the governor of the Bank of England, has broken his silence about pressure from Nigel Farage to drop a cryptocurrency policy that could affect Reform UK's billionaire backer. In a letter seen by the Guardian, Bailey stated he is 'able to spot' and resist lobbying.
Farage's Meeting with Bailey
Farage used a private meeting with Bailey in September to demand that the Bank drop plans for a state-issued rival to cryptocurrency. Farage later told a crypto conference: 'I asked [Bailey] straight: Are you still progressing your plans for a British central bank digital currency? And the answer was: Yes.' To thwart the plan, Farage said he would be 'prepared to go to prison'.
Lobbyists for Tether, the El Salvador-based company part-owned by Harborne, have written to the Bank arguing against its plans for a 'Britcoin', claiming it could cut demand for Tether's stablecoins.
Bailey's Response
In his letter, Bailey wrote: 'As a general point, I recognise that we are, by the nature of the Bank's role, regularly subject to lobbying. I can assure you that we are able to spot this and appropriately discount it.' He confirmed that no policy changes have taken place as a result of Farage's interventions.
Farage has claimed he urged Bailey to drop plans for a cap on stablecoin ownership, telling him: 'Listen mate, you're being a dinosaur.' After a consultation, the Bank dropped the planned cap, but Bailey says this was not due to Farage's pressure.
Political Fallout
Farage's decision not to disclose a £5m gift from crypto tycoon Christopher Harborne has triggered a political crisis. On Tuesday, Farage said he would resign as an MP amid a parliamentary standards investigation into the payment and another into undeclared support from convicted fraudster George Cottrell. Denying wrongdoing, Farage called for a 'people versus the establishment' byelection, but other parties have announced a boycott.
Labour MP Joe Powell said: 'I'm pleased the governor has confirmed Nigel Farage's brazen lobbying attempt on behalf of crypto billionaires was unsuccessful. It's clear he has no regard 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.
