Farage's Party Linked to Billion-Dollar Stablecoin Firm with Close Ties to Bank of England

Nigel Farage's Reform party has received significant donations from Christopher Harborne, who also holds a substantial stake in Tether, the company behind the USDT stablecoin. According to European Central Bank data, Tether bought more gold last year than any other entity, with $135bn (£101bn) worth of US Government debt, surpassing that held by South Korea.

Tether's assets are stored in a Swiss former nuclear bunker, and its boss claims the company employs just 200 people. However, this belies Tether's significant influence on the global financial system, with some comparing it to a private central bank.

Harborne's donations to Reform total £15m, making him the party's largest donor. In addition, Farage accepted a previously undisclosed £5m personal gift from Harborne last year. The timing of these donations coincides with significant regulatory changes in the stablecoin sector, with the US Genius Act and UK consultations on sterling stablecoins.

Andrew Bailey, Governor of the Bank of England, met with Farage in September 2022 to discuss cryptocurrency regulation. While Farage emphasized his support for regulated innovation, some have raised concerns about potential conflicts of interest given Harborne's significant stake in Tether and his role as a registered lobbyist for the Digital Currencies Governance Group.

Sir Charlie Bean, former Deputy Governor at the Bank of England, noted that stablecoins are only stable if they operate within an appropriate regulatory environment. He also highlighted the potential for conflicts of interest when major shareholders have a significant influence on policy decisions.