The UK government has ruled out the creation of national cryptocurrency reserves for now, signaling a cautious but proactive approach to digital assets.
Speaking at the FT Digital Asset Summit in London, Economic Secretary to the Treasury Emma Reynolds dismissed the idea of the UK holding Bitcoin on its balance sheet. “We don’t think that’s appropriate for our market,” Reynolds said, when asked whether the UK would mirror the U.S. approach of maintaining crypto reserves.
Blockchain Over Bitcoin
While the government isn’t considering holding cryptocurrencies like Bitcoin, Reynolds noted that blockchain technology itself could still play a role in modernizing public finance. She revealed that the UK is exploring the use of distributed ledger technology (DLT) for issuing sovereign debt — a move that could signal more experimentation with emerging technologies in traditional finance.
Reynolds, who took over as economic secretary following Tulip Siddiq’s resignation, is tasked with overseeing the UK’s crypto regulation strategy and plans for a central bank digital currency. Her appointment comes amid growing efforts by the UK government to tighten crypto compliance while positioning the country as a leader in digital finance.
UK and US: Shared Regulation, Divergent Reserves
Reynolds also emphasized ongoing cooperation between the UK and U.S. on digital asset regulation. She referenced recent conversations between UK Chancellor of the Exchequer and U.S. Treasury Secretary Scott Bessent, confirming the creation of a “senior official level working group” focused on digital assets.
While the UK is distancing itself from the U.S. path of crypto holdings at the state level, it continues to align with Washington on regulation and innovation in blockchain infrastructure. Reynolds’ comments underscore the UK’s strategy of cautious adoption — steering clear of volatile assets while embracing the technology underpinning them.
