Farage Drops Crypto Bombshell: Bank of England to Hold Bitcoin, Trading Taxes Slashed

In a move that sent shockwaves through Westminster and Crypto Twitter alike, Nigel Farage unveiled a radical crypto overhaul—pitching Bitcoin reserves for the Bank of England and sweeping tax breaks for traders.

The proposal—equal parts libertarian dream and Treasury nightmare—would mark the UK’s sharpest pivot toward digital assets yet. No word on whether Threadneedle Street’s gold vaults will get a Ledger upgrade.

One City insider quipped: ’Finally, a fiscal policy that moves faster than the Old Lady’s payment rails.’

A Push for Reform and Sovereignty Through Crypto

The Reform party’s crypto push is partly influenced by broader international trends, including the current US administration’s embrace of digital assets.

Farage drew comparisons between the UK’s slower pace and recent moves in the United States to provide regulatory clarity and support crypto innovation. He positioned Bitcoin as a tool of financial sovereignty, referencing both national independence and personal financial freedom.

According to recent polling data, Reform has gained momentum, now polling ahead of Labour and the Conservatives in some aggregated surveys.

However, the general election isn’t expected before August 2029. Farage acknowledged the long road ahead but stressed the importance of starting a national conversation. He pointed to his past influence on Brexit as an example of how public debate can shift political direction.

The UK currently holds roughly 61,245 BTC in government-managed wallets, placing it third globally behind the US and China. While Farage wants to expand this reserve, existing Treasury plans do not include such a strategy. Meanwhile, the UK has gradually been building a framework for crypto regulation.

This includes bans on crypto derivatives for retail investors, financial promotions rules, and consultations on future oversight of stablecoins, staking, and custody services.

Crypto Donations and Political Momentum

Reform UK has also become the first political party in Britain to accept donations in Bitcoin and other cryptocurrencies, a MOVE Farage hopes will attract younger voters and tech-savvy supporters. He also reiterated his opposition to the introduction of a central bank digital currency (CBDC), calling it a threat to individual liberty.

Despite his party’s recent local election success and the growing appetite for alternatives to traditional finance, Farage made it clear that systemic change WOULD require building significant political support.

He emphasized grassroots engagement and growing party membership as critical steps toward building what he called a “People’s Army” focused on long-term reform.

Whether Farage’s proposals gain traction or not, the speech signals that cryptocurrency policy could become a more prominent issue in UK politics. For now, the stage has been set for broader debate on how the country engages with digital finance in the years ahead.

Featured image created with DALL-E, Chart from TradingView