UK Ditches Bitcoin Reserve Plan and Backs Blockchain for Debt

Highlights:

• The United Kingdom does not plan to follow the path taken by other countries on digital assets.
• Officials aim to use blockchain for debt issuance, with a supplier expected to be selected by late summer.
• A UK and US joint group will meet in June to discuss policies and share knowledge on digital assets.

The United Kingdom has confirmed it will not build a national Bitcoin reserve, according to Decrypt. Emma Reynolds, who serves as Economic Secretary to the Treasury, said the country will not follow the U.S. move to stockpile Bitcoin. She explained that this approach does not suit the UK’s financial landscape. While the U.S. prepares to use seized Bitcoin as a strategic asset, Reynolds said this idea does not match the UK’s goals.

UK Treasury’s Economic Secretary Emma Reynolds rules out national #Bitcoin reserve.

Says it's not “appropriate for our market.” pic.twitter.com/TopourfFvi

— STACKMASTER (@IAMSTACKMASTER) May 6, 2025

She made it clear that the UK prefers a direction that aligns with its local market needs. She added that the U.S. decision reflects what it wants and does not represent what the UK wants. Though the UK is open to growth in digital asset use, it will not copy other governments’ models. Reynolds explained that the country remains focused on outcomes rather than adopting other systems.

Reynolds stated that the country follows a different tradition when it comes to rules. She explained that it does not seek to copy the EU’s crypto asset framework known as MiCA. She said the UK is choosing a different path by forming its own rules that reflect domestic needs. Instead of building new structures outside of financial norms, the UK will keep digital asset oversight within current systems used by finance firms. She said that equal treatment is the goal, meaning the same standards should apply where risks are similar.

UK Develops Blockchain Bond Plan Instead of Holding Crypto Assets

Although the UK will not build a crypto reserve, it continues to explore the use of blockchain technology in government operations. Reynolds said the country is looking at ways to issue sovereign debt using distributed ledger systems. She explained that the process to select a vendor is already in motion. Officials aim to appoint a provider by late summer this year.

Reynolds confirmed that the UK supports the use of digital systems for improving financial tools. However, this interest in digital upgrades does not include building a store of cryptocurrencies. Instead, officials are focusing on long-term projects that support financial innovation. Reynolds noted that the effort to modernize debt instruments shows the UK’s plan to use blockchain without taking on asset price risks.

While speaking at the summit, she made it clear that some parts of the digital asset space remain difficult to manage. She pointed out that decentralized networks like Bitcoin have features that limit control by public institutions.

UK and U.S. Strengthen Cooperation Through Joint Policy Meetings

Alongside its domestic plans, the UK is also working closely with the United States to improve coordination in digital asset oversight. The secretary said that recent meetings between the UK Chancellor and Scott Bessent have helped lay the groundwork.

The UK and the U.S. have now formed a senior-level working group. This team will focus on digital asset policies and information sharing. She confirmed that this forum will hold its first meeting in June. The aim is to shape a shared path for dealing with digital asset developments across borders. Reynolds said that both countries see value in working together. She explained that this cooperation can help manage challenges in digital finance and support clear practices across markets.