Bailey Denies Farage Lobbying Influenced Bank of England’s CBDC Approach

Bank of England Governor Andrew Bailey has denied that lobbying by Nigel Farage affected the central bank’s approach to a potential central bank digital currency (CBDC), saying policy decisions were made independently. According to Cointelegraph, a Wednesday report by The Guardian said it obtained a letter from Bailey in which he stated the Bank of England is “able to spot” attempts to influence its policymaking. In the letter, Bailey referenced a meeting with Farage where they discussed several issues, including cryptocurrencies. Bailey wrote that after the meeting, Farage spoke to the press about the topics covered, including crypto, but added that no policy changes resulted from Farage’s interventions. Farage, leader of the UK’s Reform Party and a prominent supporter of Brexit, resigned his parliamentary seat this week amid reports that he accepted “gifts” from individuals with ties to the crypto industry. Farage has been an outspoken critic of CBDCs, saying he would “rather go to prison” than live under what he described as a system of financial surveillance. Despite resigning, he maintained his innocence, saying in an X livestream that he has “not broken the law in any way at all.” Separately, amid investigations involving Farage, The Guardian reported Wednesday that the UK’s National Crime Agency is investigating several transactions involving other senior Reform UK figures over suspected money laundering. The report did not detail the transactions in question. The Bank of England continues research into a potential CBDC, often referred to as the “digital pound,” which remains in the design phase as policymakers assess its role in an increasingly digital economy. The central bank has said 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, the Bank launched a six-month pilot to explore how tokenized assets could be settled using central bank money. The project involves 18 companies and is part of the central bank’s broader effort to modernize the UK’s financial infrastructure.