British MP Emma Reynolds, serving as Economic Secretary to the Treasury, has clarified that the UK government has no current plans to adopt strategic Bitcoin reserves.
Speaking at the Financial Times Digital Asset Summit, Reynolds emphasized that Bitcoin’s extreme volatility makes it incompatible with the UK’s foreign exchange reserve principles.
She stated, “We don’t think that (a Bitcoin reserve is) appropriate for our market,” contrasting the UK’s approach with that of other countries.
Notably the United States, which is reportedly pursuing a state-backed Bitcoin reserve under a recent executive order by President Donald Trump.
Treasury Communications Reinforce Policy Against Bitcoin Reserves
Further reinforcing this position, internal communications between HM Treasury and Bitcoin Policy UK confirmed that the UK government would not consider holding Bitcoin unless it is acquired through legal seizure.
The Treasury noted that Bitcoin is significantly more volatile compared to traditional reserve assets such as the US dollar or gold.
A formal statement clarified, “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.”
The stance places the UK at odds with other nations like the Czech Republic, Kyrgyzstan and Pakistan, which have expressed interest in exploring digital asset reserves.
Bitcoin Policy UK Urges Strategic Rethink Amid Holding Discrepancies
Despite the official stance, Bitcoin Policy UK has called for greater engagement on the issue. Freddie New, Head of Policy at the organization, criticized the UK government’s reluctance to recognize Bitcoin’s potential as a strategic asset.
New highlighted a key contradiction: the UK already holds over 61,000 BTC, valued at over $5.3 Billion, mainly from enforcement actions.
He argued that such a valuable asset warrants strategic oversight and planning, even if the government chooses not to formalize it as a national reserve.
Also Read: UK’s Ex-Minister Steve Baker Joins Bitcoin VC Firm Axiom Amid Growing Crypto-Political Links
Potential Use of Seized Bitcoin Sparks Fiscal Debate
Freddie New also pointed to practical implications of the UK’s Bitcoin holdings.
He suggested that the 61,000 BTC in government possession could fund significant public welfare programs, such as covering the winter fuel allowance for pensioners for two years.
While the government maintains its position against a formal Strategic Bitcoin Reserve.
These revelations have sparked renewed debate over whether existing holdings should be managed more strategically.
As the global financial landscape evolves and more governments explore crypto reserves.
Pressure may mount on the UK to reconsider its approach and ensure that its digital assets are safeguarded and utilized effectively.
Also Read: UK FCA Plans To Bar Retail Investors From Borrowing Money For Crypto Investments