Bank of England governor says he is ‘able to spot’ lobbying after Farage crypto meeting | Nigel Farage

The Bank of England governor has broken his silence about Nigel Farage’s pressure on him to abandon a cryptocurrency policy that could have been costly for the billionaire backer of Reform UK, saying he was “able to notice” and resist lobbying.

Andrew Bailey’s comments, in a letter seen by the Guardian, come as Farage’s decision not to disclose the £5 million gift he received from Thailand-based crypto tycoon Christopher Harborne triggered the biggest crisis of his political career.

On Tuesday the Reform UK leader said he would resign as an MP amid a parliamentary standards investigation into the payment from Harborne and another into the undisclosed support of his supporter, convicted fraudster George Cottrell.

Farage, who has denied any wrongdoing, called for “order against the people” in the by-election, but the Conservatives, Labor, Restore Britain, Greens and Liberal Democrats said they would boycott the election, accusing him of trying to divert attention from financial allegations.

Farage said Harborne had asked for nothing in return for providing two-thirds of the funding received by Reform and its predecessor Brexit party. But the Guardian revealed in June that Farage had held a private meeting with Bailey in September to demand that the Bank abandon plans for a state-issued rival to the cryptocurrency, which looks set to earn Harborne £1bn a year.

Farage later said at a crypto conference in London: “I asked: [Bailey] straight: ‘Are you still progressing your plans for a British central bank digital currency?’ The answer was: ‘Yes.'”

Farage added that he would be “ready to go to jail” to thwart the Bank’s plan. He claimed that the Bank’s digital currency would be introduced as part of its digital identity plan, although it was not part of the proposals.

Lobbyists for Tether, the El Salvador-based company owned by Harborne that issues the world’s most traded cryptocurrency, have written a letter to the Bank opposing “Britcoin” plans. They say this could reduce demand for Tether’s so-called stablecoins, which hold the same value as government-issued currency.

Labor MP Joe Powell wrote to Bailey seeking details of his meeting with Farage, which the Bank refused to disclose under freedom of information legislation. In his response, seen by the Guardian, Bailey said the Threadneedle Street meeting had been arranged at the request of Reform MP and deputy leader Richard Tice “following an exchange of letters”.

Bailey writes: “Overall, I am aware that we are regularly subject to lobbying due to the nature of the Bank’s role. I can assure you that we would have noticed this and failed to take it into account appropriately.”

Bailey continues: “Following our meeting, Mr Farage spoke to the press, highlighting that we discussed a range of topics, including cryptocurrencies.” Bailey says Farage has been “very clear” in expressing his “views on cryptocurrency regulation in the UK” and the Bank’s plan to issue a digital currency.

“I am pleased to confirm that no policy changes have occurred as a result of Mr Farage’s interventions,” writes Bailey.

Last month, when the bank published its updated policy on stablecoins, it said it was still considering launching its own digital currency.

Bailey adds in the letter: “I meet periodically with the leaders of the main parties… explaining our role and decisions to those to whom we are accountable.”

Farage said he asked Bailey to abandon plans for the number of stablecoins individuals can own in the UK and told him: “Listen mate, you’re becoming like a dinosaur.” Farage takes on Bailey changed his mind in conclusion. Following consultations, the Bank lowered the planned ceiling.

Powell said: “I’m pleased that the governor of the Bank of England has confirmed that Nigel Farage’s brazen attempt at lobbying on behalf of crypto billionaires has failed. He clearly has no respect for independent institutions and if Reformation were to form a government it would be one dominated by the billionaire interests that line Farage’s pockets.”

Phil Brickell, Labor chairman of the parliamentary group on anti-corruption and responsible taxation, called on the parliamentary standards commissioner to launch an investigation into whether Farage had tried to pressure Bailey by breaching lobbying rules.

Reformation England has been approached for comment. Earlier, his spokesman responded to the Guardian’s questions about Farage’s lobbying on crypto policy by saying: “This is complete nonsense. Nigel’s sole focus is on saving the country.”

When the Guardian asked Harborne about Farage’s intervention in Bailey, his lawyers did not respond in detail but said: “Mr Harborne will not comment on the fantasy.”

Farage has been a champion of cryptocurrency, and Tether in particular, since embracing Harborne’s political project. The only legislative draft of the reform is a bill that would reduce taxes on crypto profits. For a fee, Farage plugged unknown cryptocurrencies into the Cameo video site.