The United Kingdom wants to play by its own rules for crypto assets in its purse. The American Bitcoin reserve model does not fit. Representatives of the UK Treasury have stated that the government has reached a consensus that Bitcoin is inappropriate as a national reserve asset.

“Bitcoin and other crypto assets are volatile compared to predictable and stable fiat currencies such as the US dollar and commodities like gold. This volatility makes Bitcoin and other digital currencies unsuitable as a reserve asset for the UK,” the British top financial authority concluded.

The UK Treasury believes that their American counterpart confuses the concepts of 'stockpiles' and 'reserves'. According to British officials, reserves should represent a component of a nation’s economic potential. However, in the case of Bitcoin, it is merely an unlikely means of preserving such potential, the Treasury noted.

Nowadays, the UK ranks second in the world in terms of government-held Bitcoin reserves. The Royal Treasury holds 61,245 BTC, valued at over $5 billion. These digital assets were confiscated by law enforcement and have remained untouched for more than a year, sparking heated debates among lobbyists and conservatives. So far, neither group has reached a consensus on what to do with the first cryptocurrency’s stockpile.

Recently, Bitcoin Policy, a nonprofit organization, submitted a manifesto to the government advocating for a shift in digital currency policy. The group holds a negative stance on BTC, arguing that the UK has "strong reasons for immediate Bitcoin selling" to cover the budget deficit.