The UK government has ruled out creating national cryptocurrency reserves

Economic Secretary to the Treasury Emma Reynolds expressed negative sentiment towards a Bitcoin (BTC) reserve at the FT Digital Asset Summit in London.

The British government has no plans to create national cryptocurrency reserves at present, a senior Treasury official stated on Wednesday.

Economic Secretary to the Treasury Emma Reynolds expressed this sentiment at the FT Digital Asset Summit in London.

Responding to questions about whether the UK would follow the U.S. approach of holding Bitcoin (BTC) on its balance sheet, Reynolds elaborated, “We don’t think that’s appropriate for our market.”

However, while dismissing the idea of crypto reserves, Reynolds signaled the UK’s openness to leveraging blockchain technology for government finance. She revealed that the government is currently exploring the use of distributed ledger technology for sovereign debt issuance.

Reynolds, former parliamentary secretary at the Treasury, was appointed economic secretary following Tulip Siddiq’s resignation.

With this role, Reynolds will oversee the U.K.’s crypto regulation efforts and central bank digital currency plans. Her appointment came as the government continued pushing for stricter compliance in crypto while aiming to position the U.K. as a digital asset hub.

UK and US cooperation

The remarks come amid closer digital asset cooperation between the UK and U.S.

Reynolds noted recent discussions between the UK Chancellor of the Exchequer and U.S. Treasury Secretary Scott Bessent, and confirmed the formation of a “senior official level working group” focused on digital assets.

The U.K.’s stance highlights a divergence from the U.S. strategy on state-level crypto holdings, but showcases alignment on broader regulation and DLT experimentation.

Reynolds’ comments further highlight the British government's active engagement in navigating the evolving landscape of digital assets.