UK Considers Selling Bitcoin Reserve Amid Budget Pressure, Raising Concerns About Historical Mistake
Amid budget strains and growing fiscal pressures, the UK government is considering selling some of its Bitcoin reserves, estimated to be worth around £5 billion ($6.7 billion). The move, if implemented, would mark a departure from the increasingly popular global trend, with many countries actively accumulating Bitcoin as part of their strategic reserves.
Moves from the Treasury and Home Office
According to government sources, the Treasury and the Home Office are working closely with law enforcement agencies to explore the possibility of liquidating the seized digital assets. The main goal is to use the proceeds from the sale to narrow the budget deficit, which is estimated to be around £20 billion.
The government is also considering building a secure technical infrastructure to manage and monitor transactions involving digital assets to ensure transparency and efficiency in the liquidation process.
Public and political backlash
However, the proposal to sell Bitcoin has been met with criticism from experts, cryptocurrency activists, and political figures. Many have warned that the move could repeat the same historical mistake as former Prime Minister Gordon Brown's sell-off of British gold in the early 2000s, when gold prices were at record lows.
Zia Yusuf, leader of the DOGE wing of the Reform Party, spoke out against the decision, saying: “If the government continues to sell, it will be an even bigger mistake than Gordon Brown's gold sale. Instead, the UK should expand its Bitcoin reserves as part of its long-term financial strategy.”
In a similar vein, Decentra Suze, co-founder of Bitcoin Policy UK, stressed that liquidating large amounts of Bitcoin at this time is “dangerous and shortsighted,” and said that many digital assets are still in legal dispute, especially with claims from China and fraud victims regarding their origins.
Contrary to the global trend
As of now, data from the Bitcoin Treasury shows that the UK holds 61,245 BTC, worth around $7.2 billion. The majority of this amount was seized in cases in 2024, when their value was only around £1.4 billion.
If the UK decides to sell some or all of this Bitcoin, the country will follow in the footsteps of Germany, which has recently begun liquidating its large Bitcoin holdings. However, this also means that the UK would be going against a new trend that is emerging, with many countries such as El Salvador, Bhutan and even US states actively accumulating Bitcoin as a long-term strategic asset.
Conclusion
As the UK government faces increasing fiscal pressure, selling its Bitcoin reserves could temporarily ease the budget. However, this decision also carries the risk of losing a strategic asset in the long term, especially if the cryptocurrency market continues its upward trend in the coming years. Policymakers will have to carefully weigh the short-term benefits against the long-term risks to avoid repeating another controversial economic chapter in the UK’s history.