Farage attacks Bank of England ‘dinosaurs’ for holding back crypto
Nigel Farage says ‘Britain is losing ground’ when it comes to cryptocurrencies – Ian Maule/Getty Images
Nigel Farage has launched a blistering attack against “dinosaur bureaucrats” at the Bank of England, claiming they are stifling growth by curbing cryptocurrency ownership.
The Reform UK leader accused Threadneedle Street – led by Andrew Bailey, the Governor – of being “openly hostile to innovators” and squandering a chance to become a world leader in digital assets.
Officials announced this week that they planned to cap the amount of so-called stablecoins that people can own at up to £20,000 for individuals and £10m for businesses.
Unlike cryptocurrencies such as Bitcoin, stablecoins are pegged to established currencies such as the pound and dollar and are designed to be less volatile.
Supporters say stablecoins will make payments easier by giving users a fast, cheap and anonymous way to send money around the world.
However, Bank officials are concerned that these cryptocurrencies could weaken the banking system if users divert money from their bank accounts into crypto wallets, draining the banking system of vital cash.
Writing in The Telegraph, Mr Farage and Zia Yusuf, the former Reform chairman, said the Bank’s curbs on cryptocurrencies would reverberate through the economy and could even hurt demand for gilts.
“Make no mistake: what the Bank announced is not some minor technical tweak. It is another example of unelected bureaucrats doing the most foolish thing possible and choking off British innovation and competitiveness,” they said.
“It reduces relative demand for UK gilts and pushes the City of London further behind its global rivals.”
The pair added: “For too long, our country has allowed unelected, dinosaur bureaucrats to make the rules that govern the future of our financial system.
“Parliament and thus the elected representatives of the British people has abdicated responsibility for setting direction. The consequence is obvious: Britain is losing ground.”
Zia Yusuf wrote with Mr Farage that he would ‘never’ back a central bank digital currency – Chris Lobina
The stablecoin market has grown rapidly over the past few years to reach almost $300bn (£222bn) and the Bank’s move has drawn widespread criticism from cryptocurrency and payment groups who say it will put the UK at a disadvantage compared with other countries.
Rachel Reeves, the Chancellor, also risks a clash with Mr Bailey over her plans to drive forward cryptocurrencies.
While Mr Bailey has not directly rejected stablecoins, he told MPs this year he would need “a lot of convincing that the use case was made”.
Mr Farage and Mr Yusuf said they would pave the way for widespread cryptocurrency use if elected.
They wrote: “We have a choice. We can let the Bank of England cap innovation, stifle entrepreneurs and push capital offshore – or we can seize the opportunity, set the rules in Parliament and lead the world.”
The Bank is also considering introducing a central bank digital currency, which has raised concerns about data use and privacy.
Mr Farage and Mr Yusuf said they would “never” back such a proposal.
They said: “A ‘digital pound’ run directly by the state would hand unprecedented control over our money to the Bank of England and create the very opposite of the open, competitive financial system we need.
“The future must be built on innovation from the ground up, with private sector stablecoins properly regulated, not imposed from the top down by a government-mandated currency.”
By Nigel Farage and Zia Yusuf
The Bank of England announced on Friday that it will create hard caps on how much stablecoin businesses and consumers can own. For most people, the word stablecoin sounds abstract and niche. But make no mistake: what the Bank announced is not some minor technical tweak. It is another example of unelected bureaucrats doing the most foolish thing possible and choking off British innovation and competitiveness. It reduces relative demand for UK gilts and pushes the City of London further behind its global rivals.
For too long, our country has allowed unelected, dinosaur bureaucrats to make the rules that govern the future of our financial system. Parliament and thus the elected representatives of the British people has abdicated responsibility for setting direction.
The consequence is obvious: Britain is losing ground.
In America, dollar-backed stablecoins like USDC and Tether now process hundreds of billions of dollars in transactions every month. They are fast becoming a backbone of the digital economy, used not just by crypto enthusiasts but by powerhouse international firms for payments, settlements and global commerce.
Issuers of these US dollar stablecoins are now among the largest buyers of US Treasury bills. Every time an investor buys a USDC token, Circle – its issuer – takes a dollar and invests it in US Treasuries.
The result? The US government enjoys a steady, growing stream of demand for its debt. The American taxpayer benefits. The dollar strengthens as the dominant currency of the digital age.
Now ask yourself: where is the British equivalent? Where is the pound-backed stablecoin with deep liquidity, one that global markets can trust, one that channels fresh demand into UK gilts? It doesn’t exist because policymakers here have been openly hostile to innovators. Instead of building the future, Britain’s regulators have smothered it.
To be clear, Reform UK will never support the creation of a central bank digital currency (CBDC).
A “digital pound” run directly by the state would hand unprecedented control over our money to the Bank of England and create the very opposite of the open, competitive financial system we need. The future must be built on innovation from the ground up, with private sector stablecoins properly regulated, not imposed from the top down by a government-mandated currency.
Reform UK has set out a clear vision with our Cryptoassets and Digital Finance Bill.
We will create a regulatory framework that is transparent, proportionate and pro-growth. We will make Britain the most attractive jurisdiction in the world for crypto and digital finance.
We will ensure that stablecoin issuers can flourish here, provided they meet high standards of backing and disclosure, so that the pound sterling can stand tall in the digital age, not fade into irrelevance.
Stablecoins are not a danger to financial stability. They are a bridge. A bridge between the digital world and the traditional banking system. A bridge between entrepreneurs and customers, between investors and opportunity.
They are simply new wrappers around money – safer, faster, programmable money that can settle instantly across borders without costly intermediaries.
Other countries see this. In Singapore, Dubai and the United States, regulators are building frameworks that welcome innovation while ensuring basic standards. The result is dynamism, investment, jobs and prosperity.
This is not just a technical policy debate. It is about something much bigger: who governs Britain?
For years, Labour and Conservative ministers have abdicated responsibility for our economic future to unelected technocrats. The Bank of England was made independent a generation ago and independence has ossified into unaccountability. Its governors and committees now feel empowered to decide not just the level of interest rates but the very architecture of our financial system.
Yet none of them ever stood for election. None ever made their case on a ballot. None are ever held to account for their many failures.
The digital asset industry already employs tens of thousands in Britain. Globally, it is worth trillions. If we succeed in building a thriving market for GBP stablecoins, we will draw capital into our country.
Every pound issued could be a pound that purchases UK gilts, lowering borrowing costs for the taxpayer. Every pound issued will cement London as the world’s financial capital for the next century.
But should we fail, if we let bureaucratic caution and fear dictate our approach, then Britain will miss the boat. The dollar will further dominate. The euro may catch up. And the pound will wither as a third-tier currency in the digital economy.
This is not just a financial risk to our nation but a sovereign one. Currency strength underpins sovereignty. A country that controls the money of the future controls its own destiny.
We have a choice. We can let the Bank of England cap innovation, stifle entrepreneurs, and push capital offshore – or we can seize the opportunity, set the rules in Parliament and lead the world.
Reform UK chooses leadership. We choose ambition. For Britain to be a world-leading country again, it must lean into its strengths: financial expertise, entrepreneurial spirit and the most innovative young people in the world at our best universities.
This country gave the world the Industrial Revolution, the modern bond market, the City of London. We can lead once again, but only if we have the courage to set our own course.
The digital economy will not wait for Britain. It will not pause while we dither. It is moving ahead, powered by countries bold enough to embrace it.
