Bank of England Governor Andrew Bailey has categorically denied that Reform UK leader Nigel Farage influenced the central bank's policy on a potential digital pound. According to reports from The Guardian, Bailey made these comments in a letter written after meeting Farage, which covered several topics including cryptocurrencies. The governor stated that the Bank of England is capable of identifying attempts to influence its policymaking and confirmed no policy changes resulted from Farage's interventions after their meeting. "I am happy to confirm that no policy changes have taken place as a result of interventions by Mr. Farage," Bailey reportedly wrote in the letter, as reported by The Guardian. The denial comes amid allegations from Labour MP Phil Brickell, who filed a complaint on July 2 regarding Farage's alleged unregistered lobbying activities. The accusation carries extra weight because of Farage's connection to Christopher Harborne, a financial backer with interests in stablecoin operations, raising questions about whether the meeting was routine political engagement or something more transactional.
In September 2025, Farage and Reform UK deputy leader Richard Tice sat down with Bailey at the Bank of England headquarters. The agenda covered the Bank's digital pound initiatives, broader monetary policy, and quantitative easing. The Bank has characterized it as a routine political engagement exercise, the kind of meeting that central bank governors regularly hold with political figures. However, Farage didn't keep his opinions to himself afterward. At an October 2025 event, he publicly criticized the Bank's plans for what's been nicknamed "Britcoin," expressing concern about its implications for financial privacy and what he sees as authoritarian overreach in digital payments. The meeting has since become a political lightning rod amid the ongoing investigations and lobbying allegations.
Farage has resigned as the Member of Parliament for Clacton amid reports that he accepted "gifts" from individuals with ties to the crypto industry. During an X livestream, Farage said he stepped down so local voters could decide whether he should continue representing the constituency instead of waiting for investigation outcomes. The Reform Party leader has been an outspoken critic of CBDCs, arguing they could increase financial surveillance. As reported by The Guardian, he previously stated he would 'rather go to prison' than live under such a system while opposing the proposed digital pound. Despite his resignation, Farage maintained his innocence, stating in an X livestream that he has "not broken the law in any way at all."
Amid the investigations involving Farage, the UK's National Crime Agency is investigating several transactions involving other senior Reform UK figures over suspected money laundering. According to The Guardian, this broader investigation into the Reform Party's financial dealings adds another layer of scrutiny to Farage's political activities and his relationship with the crypto industry. The investigations have created significant political and legal challenges for the Reform Party leadership.
Despite political developments, the Bank of England has kept its digital pound project under review. The Bank of England has been exploring a retail CBDC since 2021, motivated by declining cash usage and the proliferation of private digital payment solutions. Bailey's statement emphasized that the Bank's stance on digital pound policy remains independent of political pressure, including from Farage. No specific shifts in CBDC timelines or regulations have emerged as a direct result of the September meeting, according to Bailey. The digital pound remains in its exploratory phase, with the central bank stating no decision has been made on whether to introduce a digital pound, adding that any launch would require further analysis and public consultation. Earlier this year, it launched a six-month pilot involving 18 companies to examine how tokenized assets could be settled using central bank money. The project forms part of a broader push to modernize UK financial infrastructure, with the work suggesting the central bank is keeping its focus on payments and settlement design despite political controversy surrounding CBDCs and crypto-linked figures.
