Edited by: Yasmine Ayman
Reform UK proposes a reduction in cryptocurrency taxes and enabling tax payments in Bitcoin.
The Bank of England may consider Bitcoin reserves in light of the growing adoption of cryptocurrencies in the UK.
In light of the renewed momentum sparked by Donald Trump's return to the political arena, the adoption of Bitcoin [BTC] is gaining increasing traction among individuals, institutions, and even countries.
Michael Saylor highlights the Bank of England's vision for digital currencies
Adding to this momentum, Michael Saylor, co-founder of Strategy (formerly MicroStrategy), hinted that the Bank of England may be preparing to integrate Bitcoin into its strategic reserves.
He said:
"The Bank of England is about to... buy Bitcoin."
His comments, which came in response to Nigel Farage's participation in the Bitcoin 2025 conference in Las Vegas, indicated a potential shift in British central bank strategy towards adopting digital assets.
Nigel Farage announced at the conference:
"We will have a digital reserve of Bitcoin at the Bank of England, and we will issue legislation stating that no bank can close your account just for trading in digital currencies or legal digital products."
For those who don't know, the Reform UK organization is intensifying its cryptocurrency-supporting agenda through a bold legislative proposal, the Crypto Assets and Digital Finance Bill, which aims to reduce the capital gains tax on cryptocurrencies from 24% to just 10%.
In a historic move, the party also became the first in the UK to accept cryptocurrency donations, signaling a progressive stance towards digital financing.
Nigel Farage talks about the proposed legislation
Farage confirmed, in his speech at the conference, that the proposed legislation would also prevent banks from "canceling individuals' bank accounts" simply for engaging in cryptocurrency-related activities.
"No more bank account cancellations, ladies and gentlemen. So yes, we take this seriously, and it's really interesting that seven million people in Britain own crypto assets."
Moreover, Reform UK calls for a more favorable tax system for digital currencies, proposing not only a reduction in capital gains tax on digital assets but also allowing citizens the option to pay taxes in Bitcoin.
This initiative directly aims to attract young voters and ambitious entrepreneurs who see digital currencies as a crucial part of the financial future.
Party leader Diaa Youssef clarified that such tax reforms could help stop the outflow of high-net-worth individuals who are currently migrating to jurisdictions with more favorable tax policies for digital currencies.
Commenting on Farage's views, Peter Schiff noted that: "They have already sold all their gold at its lowest levels, about $250 an ounce. Buying Bitcoin at its highest levels will enhance their legacy."
What's next?
Needless to say, the UK's evolving stance towards digital assets is further reflected in the recent announcement by Finance Minister Rachel Reeves about integrating cryptocurrency companies under current financial regulations. This shift indicates a trend towards regulatory alignment with the United States, moving away from the European Union's approach.
At the same time, public interaction with cryptocurrencies is increasing, with about 12% of British adults owning cryptocurrencies like Bitcoin or Ethereum, a sharp increase from just 4% in 2021.
Therefore, with the UK's global ranking from Chainalysis at 12th in cryptocurrency adoption, the country seems poised to bolster its position as a strong competitor in the digital economy.