UK Treasury Rejects Bitcoin Reserves: ’Not Viable for Our Financial Ecosystem’

In a move that shocked crypto advocates, the UK government doubled down on its anti-Bitcoin stance—citing volatility and regulatory risks as dealbreakers.

The Sterling Standoff

Officials dismissed BTC as a reserve asset, claiming sterling and gold remain ’more stable stores of value.’ Critics point to the Bank of England’s own inflation struggles as irony.

Crypto Industry Backlash

Founders called the decision ’short-sighted,’ noting Germany and El Salvador’s progressive BTC adoption. One hedge fund manager quipped: ’Guess they prefer printing pounds to mining satoshis.’

As London’s fintech hub watches, the UK risks becoming a blockchain backwater—while the digital economy marches forward.

UK and US cooperation

The remarks come amid closer digital asset cooperation between the UK and U.S. Reynolds pointed to recent discussions between the UK Chancellor of the Exchequer and U.S. Treasury Secretary Scott Bessent, and confirmed the formation of a “senior official level working group” focused on digital assets. 

The UK’s stance highlights a divergence from the U.S. strategy on state-level crypto holdings while reinforcing alignment on regulation and DLT experimentation. 

Reynolds’ comments reinforce the UK’s cautious but active approach to integrating digital assets into its financial infrastructure.