Why a UK Bitcoin Reserve Is Potentially on the Cards

With Bitcoin surging, calls are mounting for the UK to follow the US in creating a national BTC reserve, but how likely is it to happen?

A confused looking Keir Starmer with cartoon question marks next to his head.
Created by Gabor Kovacs from DailyCoin
  • Bitcoin has been on fire this month.
  • Lawmakers are tabling a US national Bitcoin reserve.
  • Calls for the UK to follow suit grow louder.

A landslide Republican victory in the US election race has ignited a market rally, propelling Bitcoin to new highs as traders anticipate the impact of a pro-crypto administration. With the US positioning itself as the global crypto capital, the crypto market is optimistic.

As Donald Trump prepares to take office in 2025, plans for a national Bitcoin reserve in the US are gaining momentum. While no official confirmation has been made, growing calls for the UK to adopt a similar strategy are also making waves.

Calls For a National UK Bitcoin Reserve Mount

Following Trumpโ€™s election victory, the integration of digital assets at the national level has become a key agenda point, with plans for a US national Bitcoin reserve gaining traction. 

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Capitalizing on this momentum, podcaster Peter McCormack took to social media, urging the UK government to follow suit and establish its own national Bitcoin reserve.

In a pointed message to the Prime Minister and Chancellor, McCormack suggested that this move could replace the gold reserves sold by former Chancellor Gordon Brown in 1999, offering the UK a chance to secure its financial future.

Labour Fumbling Crypto

Adding to the conversation, Freddie New, head of policy at Bitcoin Policy UK, shared that the advocacy group has been discussing the idea of a UK Bitcoin reserve with the Treasury โ€œfor a whileโ€ now.

The Labour Party, which swept into power in a landslide victory on July 5 after 14 years of Conservative rule, has yet to clarify its stance on cryptocurrency.

At the Labour Party Conference in September, crypto executives urged the government to establish clear policies on key issues like staking and stablecoins, warning that the UK is falling behind more competitive countries with defined digital asset frameworks.

Given the limited urgency around crypto regulation, establishing a UK Bitcoin reserve may be low on Labourโ€™s priority list, if itโ€™s on the list at all.

On the Flipside

  • McCormack has criticized Labour on the basis that their socialist policies punish hard work and entrepreneurship.
  • 532,000 Brits left the UK in 2023, up 9% from the prior year.
  • Brown sold 401 tons, from a 715 ton holding, at around $275/oz, making a terrible trade for the UK.
  • The UKโ€™s nominal GDP has been flat since 2007, suggesting a nearly two-decade failure to innovate domestically and attract foreign capital. 

Why This Matters

The push for a UK Bitcoin reserve underscores how cryptocurrencies force governments to rethink traditional fiscal and monetary policies in an increasingly digitized world.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a reporter at DailyCoin covering market affairs. Samuel's has holdings in Bitcoin and Cardano, with other minor holdings across the market.

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