Nigel Farage has been quietly pressing the Bank of England to scrap plans for a UK central bank digital currency — a campaign that critics say aligns closely with the interests of a major donor to his party and raises fresh questions about political influence on crypto policy.
What happened
- Farage, leader of Reform UK, used a private meeting with Bank governor Andrew Bailey last September to urge the Bank to abandon proposals for a state-run digital pound — sometimes dubbed “Britcoin.” At a subsequent crypto event he described the Bank’s plans as “total and utter horror” and told attendees he was “prepared to go to prison” to stop a CBDC being administered under a digital ID system.
- The meeting followed months of behind-the-scenes lobbying and public interventions by Farage opposing central bank digital currencies (CBDCs) and pushing for greater acceptance of private stablecoins and crypto in the UK.
Why this matters to a major donor
- Much of the scrutiny centers on Christopher Harborne, a Thailand-based billionaire who has donated roughly £25m to Reform UK (about two-thirds of the party’s funding) and reportedly gave an additional undeclared £5m personal gift to Farage, according to reporting in April.
- Harborne is a minority shareholder in Tether — the issuer of the world’s most widely traded stablecoin — and has been linked to industry lobbying. Tether’s stablecoins are pegged to fiat currencies and are used globally for trading and transfers. Reports suggest the company’s profits have been extremely large; if Harborne’s 12% stake translated directly into profit share, that could be near £1bn a year.
The apparent conflict
- Industry groups representing stablecoin issuers — including the Digital Currencies Governance Group (DCGG), which lists Tether among participants — warned the Bank and Treasury in a 2021 submission that a UK CBDC could reduce demand for private stablecoins and “stifle growth and innovation.” The same submission argued for developing “a regulated market for private stablecoins” rather than replacing them with a CBDC.
- Critics say Farage’s public opposition to Britcoin mirrors the commercial interests of Harborne and others linked to Tether; Reform and Harborne’s lawyers strongly dispute any improper connection. Harborne’s lawyers called the suggestion “unsupported insinuations, hallucinations, and conspiracy theories,” and a Reform spokesperson dismissed the claims as “utter rubbish.”
Regulatory and public-interest concerns
- Tether is controversial in the wider crypto ecosystem: it is popular in jurisdictions with weak or inflationary fiat currencies and has been used in a range of illicit activities, according to law-enforcement and investigative accounts. The company says it cooperates with authorities. It is registered in El Salvador, has limited public financial disclosures, and does not publish full audited accounts.
- Campaigners and some politicians have demanded greater transparency about who is meeting senior officials as the UK designs its crypto framework. Anna Turley, chair of the Labour party, said she would ask the financial regulator to investigate Farage’s actions. Anti-corruption campaigners have called for the Bank to release full minutes of the meeting with Farage and Reform MP Richard Tice, saying the UK is at a sensitive stage in forming crypto regulation and public trust requires openness.
Bank of England response and next steps
- The Bank says Farage’s meeting was part of routine engagement with political representatives and acknowledged his “differing view” from the governor. It told campaigners that its CBDC work is being shaped by feedback from industry, academia and the public.
- Officials also said they are considering a range of options, including whether to impose limits on individuals’ holdings of stablecoins, following consultations. The Bank refused a freedom-of-information request for the meeting details, citing the need to preserve frank internal advice.
Context and implications for crypto markets
- If a UK CBDC were launched with broad utility, industry bodies warn it could reduce demand for private stablecoins like Tether — a development that would affect issuers and major shareholders. Proponents of CBDCs counter that a digital pound could improve payments efficiency and help counter illicit finance if designed with appropriate safeguards.
- Farage frames his opposition as a civil-liberties argument — particularly around the risk of a digital ID requirement — while industry representatives emphasize commercial risks. The overlap between political advocacy, party donations, and industry lobbying underscores the complexity of policymaking at the intersection of finance, technology and politics.
Responses and denials
- Harborne’s lawyers stressed he is a minority shareholder and denied that his activities were undertaken on behalf of Tether. Lobbying records do show Harborne registered as a DCGG lobbyist in 2020–21. Reform says Farage’s focus is “saving the country.”
- Calls for transparency are likely to continue as the UK finalises its regulatory approach to crypto assets.
Additional reporting: Henry Dyer.
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