Michaela
The United Kingdom has ruled out the creation of a national Bitcoin reserve, marking a clear departure from potential U.S. efforts to hold digital assets at a national level.
During her address at the Financial Times Digital Asset Summit in London, Emma Reynolds MP, Economic Secretary to the Treasury, stated that accumulating Bitcoin is not part of the country’s strategy.
“We don’t think that’s appropriate for our market,” Reynolds stated. “We understand that’s what the U.S. is going for, but that’s not the plan for us,” she added.
However, Reynolds emphasized the importance of transatlantic cooperation, stating that the UK is seeking alignment with the United States. She referenced recent discussions between the Chancellor of the Exchequer and U.S. Treasury Secretary Scott Bessent, as well as the creation of a “senior official level working group between the UK and the U.S.” aimed at enhancing collaboration on digital asset policy.
Reynolds noted that the upcoming meeting of the “regulatory forum” in June will include discussions on digital asset collaboration. She emphasized a significant shift in the U.S. approach to crypto regulation, describing it as a “big change from the previous administration” under President Donald Trump.
Additionally, Reynolds said the government is exploring the possibility of issuing sovereign debt using distributed ledger technology. She added that the procurement process is already in motion, with plans to select a supplier by late summer.
Furthermore, Reynolds shared that the UK does not intend to replicate the European Union’s Markets in Crypto-Assets (MiCA) framework, opting instead to develop its own tailored approach to digital asset regulation. “We decided not to go down that particular road,” Reynolds said, emphasizing that the UK’s legislative approach focuses more on regulatory outcomes than replicating the EU’s rule-based model.
Reynolds noted that the UK intends to regulate digital assets within the same framework that governs traditional financial institutions. “Essentially we’re saying, ‘Same risk, same regulatory approach’,” Reynolds said.
Reynolds acknowledged that certain aspects of the cryptocurrency sector are beyond the reach of government regulation. “There’s only so much the government can do in that regard,” Reynolds stated. “We understand that some of this stuff is a little bit amorphous, and the decentralized stuff is particularly difficult,” she added.
While the UK has firmly dismissed the idea of establishing a Bitcoin reserve, it continues to focus on developing a balanced and forward-thinking approach to digital asset regulation. As the global landscape evolves, the government’s emphasis remains on fostering innovation while ensuring stability within the financial ecosystem, without the need for a national cryptocurrency stockpile.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
