The UK plans to sell over £5B in seized Bitcoin as part of a broader move to close its growing budget deficit using crypto assets.
Experts say digital assets from criminal seizures could bring in hundreds of millions yearly if the UK builds a strong crypto sale system.
With public finances strained, selling Bitcoin now could help short-term, but poor timing may repeat past blunders like the gold sale.
The UK government is weighing a bold move—selling off over £5 billion in seized Bitcoin. As reported byTelegraph, this decision comes as Chancellor Rachel Reeves faces pressure to fill a widening budget deficit. Rising interest rates, stubborn inflation, and sluggish economic growth have squeezed the public purse.
Now, the Home Office is exploring crypto asset sales to help ease fiscal strains. The plan includes building a secure national crypto storage system, potentially unlocking massive revenues for the Treasury.
Besides, police raids have already netted substantial crypto assets. A 2018 operation alone recovered 61,000 Bitcoin, now worth over £5.4 billion. Back then, Bitcoin traded near $6,000. Today, it stands above $123,000, boosting the value of seized digital assets.
The UK’s strategy could mirror the U.S. Marshals Service, which has sold over $3.4 billion in Bitcoin. However, selling large quantities may spark debate, especially if prices continue rising.
Crypto as a Fiscal Lifeline
Additionally, industry experts believe digital assets could offer a steady revenue stream. Aidan Larkin, CEO of Asset Reality, says Britain could recover “hundreds of millions” annually from illicit digital assets. Moreover, proceeds not returned to scam victims are often split between law enforcement and central government. Hence, the Treasury stands to benefit greatly.
Still, offloading crypto isn’t simple. Unraveling crypto-related crime is slow, and legal delays can drag out asset liquidation. In Jian Wen’s case, victims want their Bitcoin back, complicating efforts to cash in. However, the Home Office is pushing ahead. It has floated a £40 million contract for a company to manage and sell seized crypto.
Selling vs. Saving Bitcoin
Meanwhile, political figures differ on what to do next. Nigel Farage wants a national Bitcoin reserve, calling it a hedge for the future. Labour disagrees. They argue Bitcoin’s volatility makes it too risky for sovereign holdings. Still, Reeves may not have the luxury of waiting. The government needs fast cash, and Bitcoin offers a rare opportunity.
Consequently, if Britain sells too soon, it could echo Gordon Brown’s gold sale blunder. But if timed right, crypto sales could provide vital relief. Moreover, it signals a growing acceptance of digital currencies in fiscal policy circles. Significantly, it may inspire other nations to follow suit.
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