UK government rejects strategic Bitcoin reserve due to volatility.
MP Emma Reynolds says Bitcoin misaligns with investment principles.
UK holds 61,000 BTC, worth $6.5 billion, from enforcement actions.
Other nations like the US and Pakistan are adopting Bitcoin reserves.
Bank of England remains skeptical of Bitcoin’s financial stability.
Tags: #Bitcoin #StrategicBitcoinReserve #UKGovernment #Cryptocurrency #Finance
UK Rejects Strategic Bitcoin Reserve: Shocking Decision Revealed
The UK government has decided against establishing a strategic Bitcoin reserve. MP Emma Reynolds announced the stance on May 28, 2025, highlighting concerns over the cryptocurrency's volatility.
Reynolds stated that Bitcoin does not align with the principles guiding foreign exchange reserve investments. The decision comes despite the UK holding 61,000 BTC, valued at approximately $6.5 billion, seized through enforcement actions.
Volatility Concerns Drive UK’s Bitcoin Reserve Decision
The UK government views Bitcoin as a highly unstable asset. Reynolds emphasized that its price fluctuations make it unsuitable for national reserves. She noted that Bitcoin’s properties fail to meet the objectives set for government investments.
This position was reiterated in a statement on May 6, 2025, at the Financial Times Digital Asset Summit. Reynolds firmly ruled out following the US, which recently adopted a strategic Bitcoin reserve under President Trump’s administration.
The US reserve, launched in March 2025, holds around 200,000 BTC, worth over $21 billion, according to a Bloomberg report. Despite this global trend, the UK remains cautious about embracing Bitcoin as a reserve asset.
UK’s Bitcoin Holdings and Global Context
The UK currently possesses 61,000 BTC from enforcement activities. This stockpile places the UK among the top government holders of Bitcoin worldwide. However, the government has no intention of leveraging these assets into a formal reserve.
Other nations, such as Pakistan and Ukraine, are exploring Bitcoin reserves. Pakistan announced plans on May 29, 2025, to allocate 2,000 megawatts of energy for Bitcoin mining while establishing a reserve, as reported by Yahoo Finance. Ukraine is also drafting a Bitcoin reserve bill, expected to be finalized soon.
The UK’s decision contrasts with these developments. It reflects a broader skepticism about Bitcoin’s role in national financial strategies. Bank of England Governor Andrew Bailey has previously warned about Bitcoin’s risks, stating it lacks the stability of traditional currencies.