UK Treasury Secretary Rejects National Bitcoin Reserve Proposal
The UK Treasury has firmly stated that it has no plans to establish a national Bitcoin reserve, citing the cryptocurrency's inherent volatility as a primary concern. A Treasury spokesperson emphasized that Bitcoin and other crypto assets have historically exhibited significant price fluctuations compared to stable fiat currencies like the US dollar and commodities such as gold, rendering them unsuitable as reserve assets for the UK .
This decision comes in contrast to recent developments in the United States, where the government announced the creation of a Strategic Bitcoin Reserve funded by seized assets . While the UK government currently holds approximately 61,245 BTC—valued at over $5 billion—as a result of criminal seizures, there is no commitment to retain these holdings indefinitely . Some experts advocate for selling these assets to support economic stability, while others argue for maintaining them to potentially bolster the asset's market value.
Despite the government's cautious stance, the UK's cryptocurrency sector continues to evolve. In early 2025, major exchange Coinbase received regulatory approval to offer crypto services in the UK, signaling a growing acceptance of digital assets within the financial ecosystem . However, the Treasury's decision reflects a broader European skepticism toward incorporating cryptocurrencies into national reserves, prioritizing financial stability and risk management over the adoption of volatile digital assets.
