Summary of Reform UK's Stance on Digital Currencies
Reform UK, led by Nigel Farage, plans to terminate the United Kingdom's Central Bank Digital Currency (CBDC) project if elected. The party also proposes the establishment of a £5 billion Bitcoin reserve and aims to reduce the crypto capital gains tax to 10%.
Farage Declares Opposition to CBDC Project
Nigel Farage, the leader of the Reform UK party, has publicly stated his intention to stop the United Kingdom's Central Bank Digital Currency (CBDC) project. Farage has indicated his readiness to take significant measures to prevent the CBDC plan from proceeding if his party secures power. He described CBDCs as "the ultimate authoritarian nightmare" and affirmed his commitment to supporting private digital assets.
Farage, who was instrumental in the Brexit movement, made these remarks during the Digital Asset Summit 2025 held in London. He explicitly stated, "If and when we win the next election, we will automatically shut down the CBDC project." This declaration aligns with Reform UK's broader platform, which advocates for the integration of cryptocurrencies, such as Bitcoin and Ethereum, into the financial system.
Farage Criticizes Bank of England's Policies
Farage has been a consistent critic of the Bank of England's proposals regarding digital currency. He has voiced strong disapproval of the proposed stablecoin caps, labeling them as "ridiculous" and "another example of unelected bureaucrats doing the most foolish thing possible." He argues that such policies hinder British innovation and undermine the country's competitive standing.
The Bank of England, under the leadership of Governor Andrew Bailey, has been actively involved in discussions surrounding digital currencies. Despite the criticisms, there have been no indications of a policy shift from the Bank of England in response to Farage's statements. Reform UK's opposition positions them as a significant voice challenging the established views on financial innovation in Britain.
Reform UK's Proposed Cryptocurrency Policies
Reform UK's policy platform includes several key proposals related to cryptocurrencies. Among these is the suggestion to establish a £5 billion Bitcoin reserve, to be managed by the Bank of England, utilizing crypto assets that have been confiscated from illicit activities. Furthermore, the party proposes to lower the crypto capital gains tax from the current rate of 24% down to 10% and to allow tax payments to be made in Bitcoin.
The party's willingness to accept political donations in cryptocurrencies further underscores its institutional embrace of digital assets. This move positions Reform UK as the first major British political party to engage with crypto donations, signaling a notable openness to the potential role of blockchain technology in economic policy.
Potential Impact on Cryptocurrencies and the Market
The direct impact of Farage's stance on UK protocols on the cryptocurrency market remains speculative at this time. The proposal specifically mentions Bitcoin, Ethereum, Solana, and USD Coin. However, there is currently no publicly evident shift in on-chain data or trading volumes that can be directly attributed to these statements.
Globally, similar anti-CBDC rhetoric has been observed, echoing recent statements made by figures like Donald Trump. Such proposals have, in the past, influenced market sentiment. However, significant market shifts typically require legislative enactment to materialize. The outcome of the upcoming election will be a crucial factor in determining the extent to which Reform UK's proposals will influence British regulatory policies.