The Bank of England said Nigel Farage’s attempts to influence policy on a potential digital pound had no effect on its strategy. Governor Andrew Bailey made the point while answering questions about a confidential meeting held in September at the Bank’s Threadneedle Street headquarters in London, where digital asset regulation and work on the proposed digital pound were discussed.
Reports said Farage asked Bailey to stop the central bank digital currency project. Farage later stated at a crypto industry event that he had challenged Bailey directly over the digital pound. Bailey’s response was clear: the Bank can identify lobbying efforts and keeps its decision-making independent from outside pressure.
Bank keeps its line after private September meeting
Officials said the interaction led to no change in existing strategy. In related correspondence, Bailey repeated that the Bank’s approach to crypto policy and the digital pound remains free from political interference. The project itself is still in the research phase, and the institution has not made a final decision on whether it will be implemented.
The Bank said more technical analysis is still needed, along with broad public consultation. Even if the work moves forward, a rollout would require government backing and parliamentary approval. For now, the process remains one of study and policy design rather than execution.
Funding scrutiny adds a political edge to the dispute
The issue widened after attention turned to Farage’s financial backers. Claims that he received about £5 million from businessman Christopher Harborne increased pressure, especially because Harborne has links to stablecoin issuer Tether. Tether has been openly critical of central bank digital currencies, arguing that a state-backed digital currency could weaken the market for private stablecoins.
That has revived questions over Reform UK’s funding sources. The political argument now centers on whether opposition to the digital pound is connected in any way to the party’s financial contributors. Farage has long argued that CBDCs could threaten individual freedoms, and he has repeatedly linked the digital pound concept to digital identity systems. The Bank of England’s official recommendations, however, do not propose that kind of integration.
Standards inquiry continues as digital pound research stays on track
Farage resigned from parliament this week, while continuing to deny accusations tied to his financial disclosures. A parliamentary standards inquiry is still underway, and Labour MPs have called for an investigation into whether he broke lobbying rules. Mainstream parties have also said they will not field candidates in any possible by-election, drawing more attention to Reform UK’s operations.
Through all of that, the Bank’s public position has stayed the same. Research on the digital pound is continuing, and the institution says its policy process remains independent. The clearest takeaway is narrow but important: no implementation decision has been made, and the project has not moved beyond the evaluation stage.