The Bank of England has pushed back against suggestions that a private meeting between Governor Andrew Bailey and Reform UK leader Nigel Farage shifted its stance on a UK central bank digital currency (CBDC).
In a letter reported by The Guardian, Bailey confirmed he met Farage to discuss a range of issues, including cryptocurrencies, but stressed the meeting did not prompt any change in the Bank’s approach to a potential “digital pound.” Bailey told the paper the Bank is alert to attempts to influence policymaking and that no policy decisions resulted from that conversation.
Why it matters for crypto watchers
- The exchange highlights growing political scrutiny around CBDCs and the risk of perceived interference in central bank deliberations.
- Bailey’s denial reinforces the Bank’s insistence on an independent, evidence-led process for any CBDC decision — a key point for industry participants worried about politicisation.
- Farage, a vocal opponent of CBDCs who has warned they could enable greater financial surveillance (he once said he’d “rather go to prison” than live under such a system), has been campaigning against the proposed digital pound.
Political backdrop and investigations
Farage has resigned as the Member of Parliament for Clacton and will contest a by-election — a move he says lets voters decide his future rather than await the outcome of ongoing parliamentary inquiries. He maintains he “has done nothing wrong” and denies misusing public funds.
The parliamentary standards commissioner is probing two matters involving gifts Farage received: one from crypto investor Christopher Harborne and another from George Cottrell, who has a prior fraud conviction and has been linked in reporting to a crypto casino. Farage says Harborne’s money was an unconditional gift intended to pay for his personal security due to threats. Separately, The Guardian says the National Crime Agency is investigating transactions involving other senior Reform UK figures; the report did not allege Farage is part of that probe.
Where the Bank of England stands on a digital pound
Despite the political noise, the Bank says its digital pound project remains under review. No decision has been made on launching a CBDC — any move would require more analysis and public consultation. Earlier this year the Bank launched a six-month pilot with 18 firms to test how tokenised assets could be settled in central bank money, a practical step toward understanding how a digital pound might operate in the UK’s financial plumbing.
Bottom line
The episode underscores the heated politics around CBDCs: strong public concerns about surveillance and privacy; activists and politicians pressing the debate; and central banks attempting to keep policy development insulated and evidence-based while running technical pilots to test real-world implications for crypto markets and settlement infrastructure.
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