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Representatives of the British cryptoasset sector have urged Chancellor Rachel Reeves to not sell the UK’s Bitcoin holdings, calling for long-term support over an immediate windfall.
Reeves is looking at the possibility of selling off at least £5bn worth of Bitcoin, held by the Home Office after seizing the assets from criminals, according to reporting in the Independent.
Though the prospect of adding a few billion pounds to the Treasury may be tempting for the embattled chancellor, figures from the sector have warned that the move is shortsighted.
“Any plans to sell the UK government’s Bitcoin would run contrary to Rachel Reeves’ recent positive sentiments towards the industry,” said a spokesperson for CryptoUK, Britain’s blockchain trade association.
The group has commended the government’s efforts to incorporate cryptoassets into the wider economy through measures such as approving the listing of crypto-backed exchange traded notes (ETNs) and draft legislative support for stablecoins.
CryptoUK has, however, argued a fire sale of the UK’s seized Bitcoin holdings goes against the country’s long-term ambitions.
“Other jurisdictions now hold Bitcoin reserves and Bitcoin treasuries are increasingly popular with companies,” the spokesperson added.
“We would urge the government to take a long-term view on the holding of crypto and deeply consider what message offloading these digital assets would send to the UK’s crypto industry.”
Nigel Green, chief executive of financial advisory firm deVere Group said selling the UK’s Bitcoin “risks repeating historical errors” in hasty asset sales.
“Fiscal pressure shouldn’t drive poor asset decisions. Economists often cite gold sales in the late 1990s as a cautionary tale. Sold at depressed prices, the assets were later criticised for heavy losses when bullion rose.”
The value of Bitcoin has surged by more than 70% in the past 12 months, surpassing $118,000 over the weekend, an all-time high.
Green, like CryptoUK, called for a “strategic Bitcoin reserve”.
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