UK rules out Bitcoin reserves: not ‘appropriate for our market’

The UK government has ruled out creating national cryptocurrency reserves at the moment.  

Economic Secretary to the Treasury Emma Reynolds expressed negative sentiment towards a Bitcoin (BTC) reserve at the FT Digital Asset Summit in London. 

Responding to questions about whether the UK would follow the U.S. approach of holding Bitcoin on its balance sheet, Reynolds stated, “We don’t think that’s appropriate for our market.”

While dismissing the idea of crypto reserves, Reynolds signaled the UK’s openness to leveraging blockchain technology for government finance. She revealed that the government is exploring the use of distributed ledger technology for sovereign debt issuance.

Reynolds, former parliamentary secretary at the Treasury, was appointed economic secretary following Tulip Siddiq’s resignation. Reynolds was set to oversee the U.K.’s crypto regulation efforts and central bank digital currency plans. 

Her appointment came as the government continued pushing for stricter compliance in crypto while aiming to position the U.K. as a digital asset hub.

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.