Kwasi Kwarteng, the former UK Chancellor of the Exchequer whose 2022 mini-budget triggered a gilt market crash and pension crisis, has resurfaced as a Bitcoin advocate and executive chairman of a UK-listed bitcoin treasury company. In a recent interview with CoinDesk, Kwarteng reflected on his tumultuous 38-day tenure, which began on September 6, 2022, and was immediately complicated by the death of Queen Elizabeth II two days later.
Kwarteng admitted his government's economic plan was "very, very rushed," rolled out just two weeks after taking office. The subsequent fallout saw UK gilt yields spike, the pound fall, and exposed critical vulnerabilities in pension funds using Liability-Driven Investment (LDI) strategies. While he believes the policy intent was correct, he acknowledges the execution was poor.
The former chancellor now warns the UK is trapped in a fiscal "doom loop," where government spending exceeds tax revenue. Attempts to close the gap by raising taxes then slow economic growth and ultimately reduce revenue, perpetuating the cycle. "You're spending more money than you can raise in taxation," Kwarteng said, adding that rising taxes "kill incentives in the economy."
He criticized the short-termism prevalent in both politics and financial markets, stating, "Everything's quarterly driven, people are either euphoric or freaking out." He argues this mindset has left the UK lagging in embracing digital assets compared to more "forward-leaning" jurisdictions like Paris. Kwarteng also pushed back against former Prime Minister Boris Johnson's characterization of Bitcoin as a "Ponzi" scheme, advocating for a more open approach to new forms of money.
Kwarteng's new role is as executive chairman of Stack BTC (ticker: STAK), a UK-listed company that holds 31 BTC on its balance sheet. The firm is part of a growing trend of UK companies adopting bitcoin treasury strategies. The company has attracted political attention, with Reform UK leader Nigel Farage holding a confirmed 6% stake in Stack BTC. Kwarteng's move into the bitcoin space aligns with his broader argument that longer-term, harder monetary assets like Bitcoin may offer more stability than the current system allows.
