Former Brexit Minister Jacob Rees-Mogg has warned the Bank of England against undermining confidence in fiat currency, drawing parallels with both Bitcoin and gold.
This came during a recent commentary on his YouTube channel. He stressed that the value of fiat currency ultimately lies in public confidence, an illusion that can easily collapse.
Rees-Mogg was responding to the Bank of England’s plan to redesign UK banknotes with more modern imagery. However, he warned that such changes risk eroding the perceived authority and continuity of the currency.
“The way to preserve value is to create the illusion that it exists,” he said, holding up modern and historic coins to show how design continuity has long served to command trust.
Gold, Paper, and Now Bitcoin
Tracing the history of fiat currency back to 11th-century China and the gold-backed British pound of the pre-WWI era, Rees-Mogg highlighted the instability of paper money and the historical consistency of gold as a store of value.
He noted that from 1660 to 1914, the purchasing power of the pound remained almost exactly the same. Meanwhile, Gold remained a solid store of value and a reliable means of exchange, he said.
By contrast, he argued that paper currencies have “always led to inflation” and ultimately serve as a hidden tax on savers and bondholders.
Rees-Mogg also noted that maintaining the perception of value is crucial for paper currency as it lacks intrinsic worth, just like modern coins made from base metals. In contrast, older coins, such as a silver shilling from the reign of Charles I, retain value due to their metal content.
In this context, Rees-Mogg added that gold, and even Bitcoin, hold real value because of scarcity and they cannot be created at will, unlike fiat money, which governments can print in unlimited quantities, as seen after the 2008 financial crisis.
Believing that paper money has inherent value, Rees-Mogg argues, is a dangerous illusion.
Bitcoin’s Scarcity
While not a full endorsement of cryptocurrency, Rees-Mogg’s remarks suggest an openness to Bitcoin’s fundamental principle: limited supply. Bitcoin operates on a decentralized, transparent protocol with a fixed maximum supply of 21 million coins. It is unlike fiat money, which governments can print in large quantities.
This “hardness” of Bitcoin production is increasingly gaining recognition from traditional financial commentators as a potential hedge against inflation and central bank overreach.
Designs That Undermine Trust
Notably, Rees-Mogg’s broader concern focused on the symbolism and design of currency, which he believes play an important psychological role in maintaining public faith. He argues that removing historical figures in favor of modern imagery weakens the illusion of continuity and undermines trust in fiat.
“When confidence collapses, so does the currency,” he warned, citing the hyperinflation episodes of Weimar Germany and Zimbabwe.
Crypto Community Responds
Rees-Mogg’s comments were widely picked up across crypto-focused social platforms. Many users interpreted them as validation of long-held arguments about Bitcoin’s scarcity and value proposition.
They all get it eventually …
Welcome to team bitcoin @Jacob_Rees_Mogg https://t.co/kIWh8tkG3r
— Bitcoin Bim 🟧 (@BitcoinBim) July 23, 2025
While Rees-Mogg did not call Bitcoin a superior alternative to fiat, he acknowledged its production constraints. His words add another voice from the political mainstream to the ongoing conversation about crypto’s place in the future monetary landscape.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
