The UK government, through Economic Secretary to the Treasury Emma Reynolds, has officially ruled out the creation of national cryptocurrency reserves, specifically Bitcoin, deeming it 'not appropriate' for the country's market. Speaking at the FT Digital Asset Summit in London, Reynolds responded to inquiries about following the US approach of holding Bitcoin on its balance sheet by underscoring that the UK will not pursue a similar strategy.
However, Reynolds indicated an openness to using distributed ledger technology (DLT) for government financial operations, such as sovereign debt issuance. She also highlighted that UK authorities remain focused on developing robust crypto regulations and exploring central bank digital currency plans. Reynolds, appointed following her predecessor's resignation, is tasked with overseeing these regulatory efforts.
Her remarks come amid growing collaboration between the UK and US on digital assets, including recent discussions between senior financial officials and the formation of a bilateral working group dedicated to digital assets. While rejecting state-level crypto holdings, the UK maintains a cautious but constructive approach to integrating digital assets and blockchain technology into its financial infrastructure.