The UK is reportedly considering selling some of its seized Bitcoin holdings to cover the rise in the fiscal deficit.
The move comes amidst pressure on the UK government to deal with the fiscal shortage. If approved, this sale marks a departure from the new global trends of the government building strategic Bitcoin reserves.
The UK faces a backlash against potential Bitcoin sales
The UK Treasury and the Home Office are working closely with law enforcement, according to the report. They aim to explore the sale of nearly £5 billion ($6.7 billion) worth of confiscated digital assets.
Authorities are also considering developing a secure infrastructure for cryptocurrency management to promote such sales.
The proposal is part of a broader fiscal strategy aimed at ease the burden on Prime Minister Rachel Reeves. Experts estimate that the UK faces a budget gap of around £20 billion, and the government may try to bridge it through asset sales and tax increases.
Meanwhile, the idea of liquidating the Bitcoin Reserve has attracted acute criticism from crypto advocates and political figures.
Zia Yusuf, who leads the Reform Party’s Doge force, issued a warning about the proposed Bitcoin sales. He said it would reflect a controversial decision by former Prime Minister Gordon Brown in the early 2000s to sell gold at low markets.
“The UK should implement reform crypto bills and increase Bitcoin reserves. Sales will decline as a much worse decision to sell Brown’s gold fires. Westminster class is a dinosaur that won’t win the future,” he said.
Decentra Suze, co-founder of Bitcoin Policy UK, also criticised the report, calling it “lazy and sensational.” She emphasized that Bitcoin held position is still exposed to legal disputes, particularly due to claims from Chinese authorities and victims seeking compensation.
“I hope this isn’t all over in the Bear market, before repeating Gordon Brown’s devastating decision to sell UK gold to the bottom. When they sell, it’s typical if it’s happening at the bottom again,” Sues added.
According to data from Bitcoin Treasuries, the UK currently owns 61,245 BTC, worth around $7.2 billion. Most of this BTC was confiscated in 2024, with an estimated value of around £1.4 billion.
If the UK proceeded with the proposed sale, it would follow the example of liquidating Germany’s recent large Bitcoin reserves.
Furthermore, this approach contrasts with an increase in countries that are actively accumulating digital assets for strategic purposes.
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