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Written Question
Bitcoin: Government
Thursday 19th December 2024

Asked by: Lord Elliott of Mickle Fell (Conservative - Life peer)

Question to the HM Treasury:

To ask His Majesty's Government what consideration they have given to establishing a strategic Bitcoin reserve for the UK and whether they will commission advice on this matter.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The UK’s foreign currency assets are held in the Exchange Equalisation Account. These assets are managed in line with the following investment principles:

  • Ensuring readiness to meet the policy requirements of the reserves
  • Limiting risk and volatility to avoid compromising the policy readiness of the reserves
  • Maximising returns within these constraints

Bitcoin has been a historically highly volatile asset relative to stable fiat currencies like the US dollar, and commodities, such as gold. This volatility makes Bitcoin unsuitable as a reserve asset for the UK.

Given this, the Government has no plans to adopt a strategic Bitcoin reserve.