Bank of England denies Farage influenced digital pound policy

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BoE denies Farage effect on digital pound

Highlights

Bank of England Governor Bailey states in a letter that the central bank's stance on digital pound policy remains independent of political pressure, including from Farage.
Farage resigns his parliamentary seat amid reports of receiving gifts from crypto-linked sources, while the UK National Crime Agency investigates suspected money laundering among senior Reform UK figures.
The Bank of England continues to design a potential digital pound, running a six-month pilot with 18 firms and emphasizing that no launch decision has been made.

Bailey rejects claims of political pressure

According to Cointelegraph, The Guardian reports that Bailey, in a letter it obtained, says the Bank of England is able to identify attempts to influence policymaking and that its stance on a central bank digital currency is formed independently.

In the letter, written after a meeting with Farage, Bailey says the two discussed a range of topics including cryptocurrencies. He adds that no policy changes have taken place as a result of interventions by Farage.

Farage, leader of the UK Reform Party and a prominent Brexit supporter, resigns his parliamentary seat this week amid reports that he accepted gifts from people with ties to the crypto industry. He remains an outspoken critic of CBDCs and says in an X livestream that he has not broken the law in any way at all.

The Guardian also reports that the UK National Crime Agency is investigating several transactions involving other senior Reform UK figures over suspected money laundering.

Digital pound work continues

The Bank of England continues to explore a potential CBDC through its proposed digital pound, which remains in the design phase while policymakers assess its role in a more digital economy.

The central bank says 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, it launches a six-month pilot involving 18 companies to examine how tokenized assets could be settled using central bank money.

The project forms part of a broader push to modernize UK financial infrastructure. The work also suggests the central bank is keeping its focus on payments and settlement design despite political controversy surrounding CBDCs and crypto-linked figures.

Our earlier article on the FTSE 100’s latest slide detailed how the UKX fell about 1.6% and moved below key short-term moving averages, with technical indicators leaning bearish. It noted that Shell’s upgraded gas output guidance offered pockets of support for energy stocks, but weakness in names like Lloyds kept broader sentiment cautious as traders watched the 10,428 support level.

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