Asked by: Lord Elliott of Mickle Fell (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 19 December 2024 (HL3296), what advice they have sought on establishing a strategic Bitcoin reserve for the United Kingdom; and whether they have had discussions with the government of the United States of America about any potential benefits this might offer the United Kingdom.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As set out in my previous response, HM Treasury currently has no plans to adopt a strategic bitcoin reserve.
The UK and US have a close and historic relationship and hold regular engagement. We will not comment on hypothetical policy positions.
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:
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.