The UK Treasury recently stated that it has no plans to establish a Bitcoin (BIT) reserve, as it believes Bitcoin's high volatility makes it unsuitable as a national reserve asset. At the same time, the US government is pushing for the establishment of a strategic Bitcoin (BIT) reserve and has pledged not to sell the BTC it holds, indicating that the views of different governments and markets are not aligned.
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ToggleThe UK will not emulate the US Bitcoin reserve policy
The UK Treasury recently stated that the country has no intention of emulating the US in establishing a strategic Bitcoin (BIT) reserve, primarily because the price fluctuations of BIT are too severe, making it unsuitable as a reserve asset for the UK.
A Treasury spokesperson, in response to an interview with Protos, clearly stated:
Compared to stable fiat currencies (such as the US Dollar) and precious metals (such as gold), BIT and other cryptocurrencies have historically been more volatile assets.
The spokesperson added: "This volatility makes BIT unsuitable as a reserve asset for the UK."
The US is establishing a strategic Bitcoin reserve
In contrast to the UK, the US has recently decided to establish a strategic Bitcoin (BIT) reserve. Last Thursday, the Trump administration officially announced the establishment of this reserve, and plans to accumulate BIT and other cryptocurrencies seized from criminal and civil forfeiture as national assets.
The executive order states that the BIT in this reserve will not be sold, but will be held as a reserve asset for the US, to be used in accordance with relevant laws to achieve government objectives. However, Trump himself seems to have a superficial understanding of this policy.
At the cryptocurrency summit held last Friday, which was attended by participants including the CEOs of Strategy (formerly MicroStrategy), Coinbase, and Ripple, Trump made some ambiguous remarks:
The US will never sell these BITs. This is a small slogan, but I'm not sure if it's correct. Who knows? Maybe it's right, so let's just keep it going.
The UK holds a large amount of BIT, but the decision to sell or hold is still undecided
According to Bitcoin Treasuries data, the UK currently holds approximately 61,245 BIT, worth over $4.87 billion, second only to the US's 198,000 and China's 190,000, the majority of which came from the confiscation of assets in a major money laundering case last year.
Regarding this large amount of BIT assets, the UK government has not yet made a final decision. A partner at the accounting firm RSM believes that the UK should sell this batch of BIT to help stabilize the national economy and make up for the fiscal deficit.
Peter Schiff: BTC prices have plummeted, should we still hold reserves?
Faced with the recent collapse of the cryptocurrency market, the well-known gold investor Peter Schiff questioned the volatility of BIT:
BIT has fallen below $77,000, a 30% drop from its all-time high in January this year. When the market value of an asset can evaporate so quickly, where is the rationale for governments to hold it as a reserve?
He stated: "If the government really needs to use the reserve assets, and the BIT price suddenly plummets more than 30% or even 50%, can it still be considered a stable store of value?"
Nevertheless, the cryptocurrency community is still unimpressed by Schiff's criticism and responded with the comment: "Welcome to your first BIT cycle, Peter."
Risk Warning
Cryptocurrency investment is highly risky, and its price may fluctuate dramatically, potentially resulting in the loss of your entire principal. Please carefully evaluate the risks.
