The UK has confirmed it does not plan to pursue a national Bitcoin reserve, distancing itself from the emerging trend of governments exploring state-backed digital asset holdings.
Economic Secretary to the Treasury Emma Reynolds said on May 6 that the UK government has no plans to establish a Strategic Bitcoin Reserve (SBR) while speaking at the Financial Times Digital Asset Summit.
According to her:
“We don’t think that [a Bitcoin reserve is] appropriate for our market. We understand that’s what the US is going for, but that’s not the plan for us.”
Her statement follows an executive order from US President Donald Trump directing the creation of a national Bitcoin reserve. That move has prompted several countries, including the Czech Republic and Kyrgyzstan, to explore similar initiatives.
However, internal communications between HM Treasury and Bitcoin Policy UK confirm that the government has no intention of holding Bitcoin unless acquired through legal seizure.
The authorities wrote:
“Bitcoin has historically been a highly volatile asset class relative to stable fiat currencies like the US dollar, and commodities, such as gold. The Government considers that this volatility makes bitcoin unsuitable as a reserve asset for the UK. Given this, HM Treasury has no plans to adopt a Bitcoin Strategic Reserve.”
Bitcoin Policy UK calls for engagement
Freddie New, Head of Policy at Bitcoin Policy UK, criticized the government’s position in a statement shared with CryptoSlate.
He argued that the UK’s reluctance to recognize Bitcoin as a strategic asset overlooks the flagship crypto’s broader potential. New highlighted that the UK government currently holds over 61,000 BTC, valued at over £4 billion, mostly from enforcement actions.
According to him, that amount could fund the country’s winter fuel allowance for pensioners for two consecutive years.
He advised:
“Even if it is determined that an SBR is not appropriate for the UK, it’s of crucial importance that the Government learns how to store and protect such a valuable asset that it holds on our behalf.”
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