Bitcoin lobby warns UK not to follow Germany in selling 61,000 Bitcoins

A Bitcoin advocacy group, Bitcoin Policy, has urged the UK government not to sell its substantial holding of over 61,000 bitcoins. This recommendation comes amid rising global support for cryptocurrencies, including endorsements from figures such as Donald Trump and governments like those of El Salvador and the UAE.

Policy Recommendations

In a recent letter to Chancellor of the Exchequer Rachel Reeves and City Minister Tulip Siddiq, Bitcoin Policy outlined three policy changes. The group argues that the government should avoid actions that could depreciate the value of its bitcoin holdings. They advocate for the UK to hold the seized bitcoins as a reserve asset rather than selling them, citing Germany’s approach as a negative example.

Bitcoin Policy’s letter to the UK’s chancellor and city minister.

The lobbyists suggest that Bitcoin could offer the UK a financial safeguard in case of severe disruptions to conventional transaction methods. However, they do not specify what such events might entail.

Global and Local Developments

The letter highlights that, in July 2024, several significant figures, including Republican presidential candidate Donald Trump and independent candidate Robert F. Kennedy Jr., will speak at the world’s largest Bitcoin conference. The group notes that various US states are enacting laws to support bitcoin self-custody and mining. Meanwhile, countries like Bhutan, the UAE, and El Salvador are adopting state-level bitcoin mining initiatives, contrasting with the UK's current stance.

Advocacy for Sustainable Mining

Bitcoin Policy posits that bitcoin mining could support sustainable energy grids by purchasing excess energy from renewable sources such as wind turbines. The group, described as a non-profit and non-partisan organisation, aims to integrate Bitcoin into the UK economy.

Leadership and Expertise

Bitcoin Policy is led by Susie Violet Ward, a Bitcoin journalist; Freddie New, co-founder of a crypto research platform; and CEO Bill Aronson, who also works in artificial intelligence research.

The group’s proposal to retain the UK’s bitcoin holdings is well-founded but overlooks the complexities of integrating cryptocurrency policies within traditional financial frameworks. Their recommendations may also face resistance from stakeholders prioritising liquidity and conventional asset management.