UK Maintains Stance Against Establishing National Bitcoin Reserve

By: Isha Das

The United Kingdom has reaffirmed its position against creating a national Bitcoin reserve, despite a growing trend among various countries to consider state-backed digital asset holdings. Emma Reynolds, the Economic Secretary to the Treasury, emphasized that such a move is not suitable for the UK market, distinguishing the nation’s strategy from that of other governments like the United States, which have recently directed the creation of strategic Bitcoin reserves.

Reynolds reiterated this stance during her speech at the Financial Times Digital Asset Summit, stating, “We don’t think that a Bitcoin reserve is appropriate for our market.” This comment follows the notable executive order issued by US President Donald Trump, aimed at developing a national Bitcoin reserve, a move that has encouraged countries including the Czech Republic and Kyrgyzstan to explore similar initiatives.

Internal dialogues within HM Treasury underscore the decision to abstain from establishing a Bitcoin Strategic Reserve. The discussions reveal the government's perspective on the digital asset’s volatility, which they view as unsuitable compared to stable fiat currencies and traditional commodities like gold. Consequently, the treasury affirmed its position: “Bitcoin has historically been a highly volatile asset class, and such volatility renders it unsuitable as a reserve asset for the UK.”

Meanwhile, Freddie New, Head of Policy at Bitcoin Policy UK, criticized the government's decision not to engage Bitcoin as a strategic asset, arguing it ignores the cryptocurrency’s potential benefits. He pointed out that the UK holds over 61,000 BTC through enforcement actions, advocating for the government to learn how to properly manage and protect such valuable assets on behalf of the public.