UK Treasury Confirms No Plans for National Digital Asset Reserve

The United Kingdom has decided against creating a national reserve of digital assets, including Bitcoin. This decision was announced at the Financial Times Digital Assets Summit by Economic Secretary to the UK Treasury Emma Reynolds.

Key Points

The UK will not stockpile Bitcoin or establish a digital asset reserve akin to the US.
The focus is on using blockchain technology to enhance existing financial systems, such as exploring distributed ledger technology for sovereign debt issuance.
This approach differs from the US strategy, emphasizing practical applications over investment in volatile cryptocurrencies.
The UK government aims to develop its own method for integrating digital tools into finance without imitating other countries.
A working group with US officials is being formed to collaborate on digital asset policies.
The UK FCA is seeking public input on regulating DeFi offerings under British law.
The UK is diverging from the EU's Markets in Crypto Assets (MiCA) framework, which imposes strict rules on digital assets.
Regulation efforts acknowledge the challenges in controlling decentralized systems like Bitcoin.