The UK Treasury has confirmed that it has "no plans" to follow the United States in establishing a strategic Bitcoin (BTC) reserve, citing the cryptocurrency’s volatility as a key reason for its unsuitability as a national asset.
The UK Treasury has confirmed that it has “no plans” to follow the United States in establishing a strategic Bitcoin (BTC) reserve, citing the cryptocurrency’s volatility as a key reason for its unsuitability as a national asset.
A Treasury spokesperson reiterated the government’s stance, stating,
Bitcoin and other crypto assets have been historically volatile relative to stable fiat currencies like the US dollar and commodities, such as gold. This volatility makes BTC less suitable as a reserve asset for the UK.
The UK’s decision comes after the US government under President Donald Trump announced the creation of a strategic Bitcoin reserve last week. The initiative, which also includes a broader cryptocurrency stockpile, aims to hold BTC obtained from civil and criminal forfeitures rather than liquidating them immediately. However, the US’s move has been met with skepticism, with critics arguing that the so-called reserve is more of a stockpile than a true strategic asset.
Trump’s administration has positioned the Bitcoin reserve as a long-term asset, maintaining that the US will not sell its BTC holdings. However, Trump himself appeared uncertain about the implications of this policy, admitting at a recent crypto summit, “I don’t know if that’s right or not. Who the hell knows, right?”
Despite the bold rhetoric, Bitcoin’s price fell sharply following the announcement, dipping below $83,000 as investors expressed disappointment. Many in the financial sector remain unconvinced about the effectiveness of this strategy, with some questioning whether the US government fully grasps the implications of hoarding digital assets rather than leveraging them for liquidity.
While the UK has firmly ruled out a government-backed Bitcoin reserve, it does hold a significant amount of the cryptocurrency. Reports indicate that the UK government currently possesses around 61,245 BTC—worth over $5 billion—mainly accumulated through criminal seizures. Unlike the US, the UK has not committed to holding these assets indefinitely. Some financial experts, including partners at RSM accounting, have suggested selling the Bitcoin to support economic stability, while Bitcoin lobbyists argue that maintaining these holdings could bolster the asset’s market value.
The UK government has maintained a cautious approach to cryptocurrency, focusing on regulatory measures rather than state-backed investments. The Financial Conduct Authority (FCA) has increased oversight, with mixed signals about how the UK intends to integrate crypto into its broader financial system. In early 2025, Coinbase secured regulatory approval to offer crypto services in the UK, while the government simultaneously enforced stricter rules on crypto platforms, including banning certain high-risk trading services.
This measured approach reflects broader European skepticism toward large-scale government involvement in cryptocurrency markets. Across the EU, officials have resisted proposals for crypto reserves, citing regulatory concerns, price volatility, and potential risks to financial stability.
Despite the government’s firm rejection of a Bitcoin reserve, crypto adoption in the UK continues to grow. With regulatory clarity improving and major players like Coinbase establishing a stronger presence, the UK remains an attractive market for crypto innovation. However, as policymakers weigh the risks and rewards of digital assets, it remains to be seen whether the UK will shift its stance in response to evolving global trends.
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