On May 6, 2025, UK Economic Secretary to the Treasury Emma Reynolds dismissed the idea of a national crypto reserve fund, asserting that it is 'not suitable for our market.' However, the UK is still cooperating with the US on digital assets. Is this a smart strategy for the future? Let's analyze in detail.
The UK Says No to Crypto Reserves
Speaking at the Financial Times Digital Assets Summit in London, Emma Reynolds, UK Economic Secretary to the Treasury, stated that the UK will not follow the US in accumulating Bitcoin for a national reserve fund: 'That is not our plan. We understand that the US is doing that, but it does not fit our market.' This stance contrasts with the US, where states like Texas and New Hampshire are pursuing Bitcoin reserve legislation, and the national fund of Bhutan holds 7,486 BTC ($720 million).
Cooperation with the US: Regulatory Forum
Despite rejecting crypto reserves, Reynolds emphasized that the UK is closely cooperating with the US. She mentioned recent meetings between the UK Chancellor and US Treasury Secretary Scott Bessent, while revealing that a 'senior working group' between the two countries will meet in June to discuss digital assets. She noted that the US has undergone significant changes in crypto policy under Trump, unlike previous administrations, opening up opportunities for deeper collaboration.
A Distinct Path: Distributed Ledger Technology
Instead of crypto reserves, the UK is considering 'the potential to issue public debt through distributed ledger technology (DLT),' with the bidding process currently underway and plans to select a provider by the end of summer. Reynolds also stated that the UK is not replicating the EU's regulatory regime (#MiCA ), but will integrate digital asset regulations into the traditional financial framework, with the principle of 'same risk, same approach.' However, she acknowledged challenges with decentralized assets like Bitcoin: 'The government can only do so much. Some things, like decentralization, are very difficult to control.'
Impact on the Crypto Market
The UK's decision sends several signals:
Short-term impact: The rejection of crypto reserves may dampen the trend of institutionalization in the UK, but it does not significantly affect Bitcoin ($94,000, preparing to reach $120,000).
Promoting technology: The adoption of #DLT for public debt could support blockchain projects like Ethereum ($1,800, soon to upgrade to Fusaka), increasing long-term confidence.
International cooperation: The forum with the US could enhance the flow of crypto funds ($3.4 billion last week), especially as Bitcoin ETFs attracted $1.8 billion.
Future Prospects
Even without holding crypto, the UK can still play a significant role in digital finance through DLT and cooperation with the US. With a projected accumulation of $330 billion in Bitcoin by 2029 (Bernstein), the UK could benefit indirectly from global trends in the next 3-5 years, provided the regulatory framework is clearer.
Conclusion: How is the UK Shaping the Future of Crypto?
The UK rejects the national crypto reserve fund, but cooperation with the US and the application of DLT for public debt shows a strategic direction. Despite facing challenges with decentralized assets, the UK's cautious approach may yield long-term benefits. Investors should closely monitor to seize opportunities in the global crypto market.
Risk warning: Crypto investments carry high risks due to price volatility and legal uncertainties. Please consider carefully before participating.