Farage's flirtation with Bitcoin will cost him his credibility

Telegraph

a day ago

Nigel Farage's entire political career has been coupled with the pursuit of credibility. From those early days of Ukip, unsuccessfully soliciting the backing of Enoch Powell, through his incendiary years in the European Parliament culminating in Brexit, to his return to Reform ahead of last year's general election, Farage has been a vocal and powerful figure in politics – but always outside the realm of serious contender.
Lately, however, the story has changed. Reform comfortably leads the polls, overturned a near 15,000-vote majority to win a by-election and was the emphatic winner of recent local elections.
Farage is an MP and widely considered the unofficial opposition, despite heading only the seventh-largest party in Parliament. Even the Prime Minister was forced to declare Farage the 'main challenger' to his government.
His credibility is no longer in question. Or at least it shouldn't be.
But, just hours after Sir Keir Starmer conceded that Reform had replaced one of the most successful political parties in history as the focus of his attention, Farage took the stage in a foreign country to announce a new policy that could torch his hard-won recognition.
Playing to the crowds of the annual Bitcoin Conference in Las Vegas, Farage committed the UK to a variety of crypto proposals in a move that smells more of his time in the political cold between Ukip and Reform than it does of a potential prime minister-in-waiting.
While policies such as allowing Reform to accept political donations in Bitcoin are irrelevant (I honestly believed they already accepted crypto cash), and a new rate of capital gains tax just for the world's most insufferable zealots will be forgotten by both party and people, Farage laid out a dangerous precedent at his fireside chat.
In declaring the Bank of England will be forced to establish a 'Bitcoin digital reserve', à la Donald Trump, Farage has made two key errors.
The first threatens his credibility with markets and the mysterious 'bond vigilantes' – a relationship that has already been strained by his other recent policy announcements. It's not even the ridiculous notion itself of a nation state buying a bunch of Bitcoin that rankles, but the inherent threat to the independence of the central bank which is foolhardy. Just ask Liz Truss.
Even Trump has (somewhat) backed down from his fight with 'loser' chairman of the Federal Reserve Jerome Powell, understanding that, like it or not, an independent central bank is sacrosanct in the 21st century.
There are fair arguments to be made on both sides regarding Farage's £90bn tax cuts. They simply cannot all be instated and do ring of 'fantasy economics' in some regards, but I think you would struggle to find any supporters of 'fiscal drag', that most euphemistic of persistent tax burdens.
But, even more vital to Farage's credibility is his perception from the polling station, not Threadneedle Street – and right now he seems more concerned with winning votes in the US than he does the UK.
Crypto is not a serious issue for voters here: a recent YouGov survey found that just 11pc of people in the UK have a positive view of crypto, which correlates with the amount of people who own any. More than a third of people either don't know or don't care.
It strikes anyone paying attention as a tickbox exercise designed to emulate the American Right rather than built from his own sincere belief. A brief look at the comments confirms it: 'Farage is making a big mistake here. He is copying Trump on this but the involvement of Trump and his DJT company and of his two sons in this is rather murky, to say the least.'
'Sorry Nigel, not a good idea, total gamble and the sort of thing Trump does, but should not be for a stable central bank to do…'
Perhaps Farage is hoping for a boost to the (unaffiliated) $FARAGE coin he once shilled for (currently down 96pc on its peak). Or maybe he is being paid for the promotion (like his £189,000 pay cheque from Direct Bullion for four hours' work promoting gold). He may even sincerely believe these policies will drag Britain into a prosperous future.
But he must consider whether all of this is worth that hard won and easily lost prize of credibility.
He'll have to make up his mind soon. The most liked comment under the news of his Bitcoin bill is simple: 'Successfully turning me off Reform day-by-day.'