Reform UK leader Nigel Farage has been actively opposing a Bank of England cryptocurrency initiative that could financially affect the billionaire funding his party. Farage used a private meeting with Bank Governor Andrew Bailey last September to urge abandonment of the state-run digital currency, known as "Britcoin."
Farage's Stance on Britcoin
Farage's opposition is so intense that he told a crypto audience he would be "prepared to go to prison" to stop the plan. His efforts come amid revelations that his party's major donor, Christopher Harborne, holds a significant stake in Tether, the company behind the world's most traded cryptocurrency stablecoin.
Donor's Financial Interests
Harborne has donated approximately £25 million to Reform UK, accounting for two-thirds of its funding. He owns a 12% stake in Tether, which reported profits surpassing Netflix and Coca-Cola. A Britcoin launch could reduce demand for stablecoins like Tether's, potentially impacting Harborne's earnings, which are estimated at £1 billion annually.
Farage framed his opposition as a fight for freedom against state overreach, claiming Britcoin would require a digital ID system—a claim the Bank of England has not confirmed. However, his position aligns closely with Tether's interests, as highlighted by a 2021 submission from the Digital Currencies Governance Group (DCGG), an industry body representing Tether, which warned that Britcoin could stifle growth and innovation in private stablecoins.
Meeting with the Bank of England
During the meeting, Farage directly asked Bailey if he was progressing with Britcoin plans. Upon receiving a positive response, Farage expressed horror and urged the governor to reconsider. He also pushed Bailey to abandon a proposed cap on individual stablecoin holdings.
The Bank of England has refused a freedom of information request for meeting details, citing potential inhibition of free and frank advice. A spokesperson acknowledged Farage's differing view but stated the Bank is developing crypto policy with input from industry, academia, and the public.
Broader Context
Harborne's lawyers dismissed the article's insinuations as "fantasy," while a Reform spokesperson called the claims "utter rubbish." However, Farage's advocacy for crypto and opposition to Britcoin appear to benefit Tether, which has faced scrutiny over its use in illicit activities, including sanctions evasion and scams. The company claims to collaborate with law enforcement globally.
Farage's meeting with Bailey also included Reform MP Richard Tice. The event has since been referenced in deepfake memes promoting crypto scams. Farage continues to urge London to embrace crypto as a global trading hub.
Campaign group Spotlight on Corruption called for transparency, demanding the Bank disclose meeting minutes. The Bank of England reiterated its commitment to engaging with political representatives while formulating policy.
