Bitcoin News Today: UK Chancellor Considers Selling $7.2 Billion Bitcoin Holdings to Reduce Deficit

Generated by AI AgentCoin World
Monday, Jul 21, 2025 1:30 pm ET1min read
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Aime RobotAime Summary

- UK Chancellor Rachel Reeves considers selling $7.2B in seized Bitcoin to address a $29.7B fiscal deficit.

- CryptoUK warns the sale contradicts UK crypto growth goals, urging long-term Bitcoin reserve strategies.

- Global trends show nations like the US and Bhutan building Bitcoin reserves from seized assets.

- UK debates official crypto storage systems amid legal challenges over returning seized Chinese-linked Bitcoin.

UK Chancellor Rachel Reeves is reportedly considering the sale of the government’s holdings of confiscated

Bitcoin
, valued at $7.2 billion (£5.33 billion). This move is being explored as a means to bolster the nation's public finances, which are reportedly facing a significant deficit.

Trade association CryptoUK has expressed concern over this potential sale, arguing that it would contradict recent efforts to promote growth in the UK’s crypto sector. The association has urged the government to adopt a long-term perspective on holding Bitcoin, emphasizing the importance of the message this would send to the UK’s crypto industry.

Reeves has highlighted a $29.7 billion (£22 billion) gap in the UK’s public finances, which is the difference between government spending and revenues. The sale of the $7.2 billion in confiscated Bitcoin could help close this financial gap. However, CryptoUK suggests that following the example of other countries that have established Bitcoin reserves might be a more prudent approach.

Several countries around the world have begun exploring strategic Bitcoin reserves. In the U.S., an executive order was signed in March calling for the creation of a national crypto stockpile based around seized digital assets. Similar moves have been made in Bhutan, Pakistan, Sweden, and the Czech Republic. In the UK, the leader of the right-wing Reform Party has proposed that the Bank of England set up a Bitcoin reserve if his party were to lead the government.

The UK Government has previously shown reluctance towards the idea of a national Bitcoin reserve. However, current discussions within the Home Office involve the establishment of an official storage system for cryptocurrencies. This system would facilitate the sale of Bitcoin or other tokens held by the government, although the percentage of proceeds that would go to HM Treasury is not yet clear.

The UK Government’s Bitcoin holdings primarily come from the 2021 seizure of just over 61,000 BTC, which was defrauded from mostly Chinese investors in a Ponzi scheme. The victims of this fraud have requested that Chinese authorities make diplomatic efforts to have the Bitcoin returned to them, raising legal questions about the UK Government’s ability to sell its holdings.