The United Kingdom is reportedly considering selling some of its seized Bitcoin holdings to help cover its mounting budget deficit.
This move comes amid growing pressure on the UK government to address fiscal shortfalls. If approved, the sale would mark a departure from the emerging global trend of governments building strategic Bitcoin reserves.
UK Faces Backlash Over Potential Bitcoin Sale
According to the report, the UK Treasury and Home Office are working closely with law enforcement agencies. They aim to explore the sale of nearly £5 billion ($6.7 billion) worth of confiscated digital assets.
The authorities are also considering the development of a secure infrastructure for crypto asset management to facilitate such sales.
Sponsored
This proposal is part of a broader fiscal strategy aimed at easing the burden on Chancellor Rachel Reeves. Experts estimate the UK faces a budget gap of approximately £20 billion, which the government may attempt to bridge through asset sales and tax increases.
Meanwhile, the idea of liquidating Bitcoin reserves has drawn sharp criticism from crypto advocates and political figures.
Zia Yusuf, who leads the DOGE unit of the Reform Party, issued a warning about the proposed Bitcoin sale. He said it would echo former Prime Minister Gordon Brown’s controversial decision to sell gold at market lows in the early 2000s.
“The UK should be implementing Reform’s Crypto Bill and increasing its Bitcoin reserves. Selling now will go down as a far worse decision that Brown’s fire sale of our gold. The Westminster class are dinosaurs who don’t get the future,” he stated.
Decentra Suze, co-founder of Bitcoin Policy UK, also criticized the report, calling it “lazy and sensational.” She emphasized that the status of the held Bitcoin is still under legal dispute, particularly with claims from Chinese authorities and victims seeking restitution.
“Plenty of time before we repeat Gordon Brown’s devastating decision to sell off the UK’s gold at the bottom. Let’s just hope this doesn’t all conclude in a bear market. When they do sell, it’ll be typical if it ends up happening at the bottom again,” Suze added.
According to Bitcoin Treasuries data, the UK currently holds 61,245 BTC, valued at around $7.2 billion. Most of this BTC was confiscated in 2024, when its estimated worth was around £1.4 billion.
Should the UK proceed with its proposed sales, it would follow Germany’s recent example of liquidating large Bitcoin reserves.
Moreover, this approach would also contrast with the growing number of countries actively accumulating digital assets for strategic purposes.
source ; https://beincrypto.com