In another statement against Bitcoin integration on an economic level, the UK Treasury Department says it has no plans to implement a strategic Bitcoin reserve like the US. According to the department’s office, the cryptocurrency’s volatility make it unsuitable for the United Kingdom, a spokesperson said this week.
“Bitcoin and other crypto assets have been historically volatile assets relative to stable fiat currencies like the US dollar and commodities, such as gold,” the spokesperson said. The representative added, “This volatility makes BTC less suitable as a reserve asset for the UK.”
Yes to US Bitcoin Reserve, No to UK Bitcoin Reserve
At last week’s US crypto summit, Donald Trump’s administration established a strategic BTC reserve alongside a “stockpile” for other cryptocurrencies. The US President serving a second term non-consecutive has announced several updates and executive orders favoring the crypto industry. Thus, the industry has more eyes on it than ever before, and is riding significant momentum. Despite the market not pumping just yet, towards the end of 2024, crypto showed signs of potential with several coins establishing new ATHs. This included Bitcoin, which is currently looking to return to the $100,000 mark it previously hit following Trump’s US election win.
The UK, however, and frankly the entire EU, has not had the same positive attitude toward a Bitcoin reserve. Several representatives have hinted that such a crypto reserve doesn’t have a place there. This is largely due to the controversy and volatility around the industry. The UK currently holds around 61,245 BTC worth over $5 billion. Almost all of this sum is made up of a major criminal seizure that took place last year. However, the UK has yet to decide to sell the Bitcoin or burn it.
Despite this sentiment from government spokespeople and officials, the crypto industry is still leaking its way into the UK. In early February, top exchange Coinbase officially received regulatory approval to launch crypto services in the UK. The platform announced it had been granted a Virtual Asset Service Provider (VASP) registration in the United Kingdom. While that was a big move for crypto, just months earlier, the UK banned popular crypto platform Pump.Fun.