On May 6, 2025, UK Treasury Secretary Emma Reynolds dismissed the idea of a national crypto reserve fund, asserting that this is "not suitable for our market." However, the UK continues to collaborate with the US on digital assets. Is this a smart strategy for the future? Let's analyze in detail.
The UK Says No to Crypto Reserves
Speaking at the Financial Times Digital Assets Summit in London, Emma Reynolds, UK Treasury Secretary, declared that the UK would not follow the US in accumulating Bitcoin for a national reserve fund: "That is not our plan. We understand that the US is doing that, but it does not suit our market." This view contrasts with the US, where states like Texas and New Hampshire are advancing Bitcoin reserve legislation, and the national fund of Bhutan holds 7,486 BTC ($720 million).
Collaboration with the US: Regulatory Forum
Despite rejecting crypto reserves, Reynolds emphasized that the UK is working closely with the US. She mentioned recent meetings between the UK Chancellor and US Treasury Secretary Scott Bessent, while revealing that a "high-level working group" between the two countries will meet in June to discuss digital assets. She noted that the US has undergone significant changes in crypto policy under Trump, differing from the previous administration, opening the door for deeper cooperation.
A Separate Path: Distributed Ledger Technology
Instead of reserving crypto, the UK is considering "the potential to issue public debt through distributed ledger technology (DLT)," with a bidding process underway and the goal of selecting a provider by the end of summer. Reynolds also stated that the UK is not copying the EU's regulatory regime (#MiCA ), but will integrate digital asset regulations into the traditional financial framework, with the principle of "same risk, same approach." However, she acknowledged the challenges with decentralized assets like Bitcoin: "The government can only do so much. Some aspects, like decentralization, are very difficult to control."
Impact on the Crypto Market
The UK's decision sends several signals:
Short-term impact: Rejecting crypto reserves may dampen the trend of institutionalization in the UK, but it will not significantly affect Bitcoin ($94,000, poised to reach $120,000).
Technology promotion: The application of #DLT to public debt could support blockchain projects like Ethereum ($1,800, soon upgrading to Fusaka), increasing long-term confidence.
International cooperation: The forum with the US could boost the flow of crypto funds ($3.4 billion last week), especially as Bitcoin ETFs attracted $1.8 billion.
Future Prospects
Although not reserving crypto, the UK can still play a significant role in digital finance thanks to DLT and collaboration with the US. With a projected accumulation of $330 billion in Bitcoin by 2029 (Bernstein), the UK could benefit indirectly from global trends in the next 3-5 years, provided there is a clearer legal framework.
Conclusion: How is the UK Shaping the Future of Crypto?
The UK rejects a national crypto reserve fund, but collaborating with the US and applying DLT to public debt indicates a strategic direction. Despite facing challenges with decentralized assets, the UK's cautious approach may yield long-term benefits. Investors should closely monitor to seize opportunities in the global crypto market.
Risk warning: Crypto investments carry high risks due to price volatility and legal uncertainties. Please consider carefully before participating.
