Britain Should Build a Bitcoin Reserve: deVere Group
- Written by: Sam Coventry
-
Image © Adobe Images
"The UK government could diversify its reserves, reduce reliance on traditional fiat currencies, and increase fiscal flexibility."
The UK government should consider establishing a strategic Bitcoin reserve says the head of a major UK wealth manager.
"The time has come for the UK to embrace the idea of a strategic Bitcoin reserve, affirms Nigel Green, the CEO of deVere Group.
The call comes after the U.S. indicated it could be moving in this direction, with Senator Cynthia Lummis of Wyoming proposing that the U.S. Treasury and Federal Reserve acquire one million bitcoins over five years to hold as part of a strategic reserve.
Her proposal positions Bitcoin as a hedge against inflation and a tool for maintaining dominance in the global financial system.
"The UK cannot afford to lag behind in this race for financial innovation and sovereignty," says Green.
He says Bitcoin's attractive characteristics include being decentralised, scarce, and immune to the inflationary pressures that have eroded fiat currencies.
Green thinks holding Bitcoin as a strategic reserve could transform the UK’s fiscal strategy by offering a hedge against traditional market volatility and currency devaluation.
Gold has long been a sovereign wealth asset favoured by governments and central banks, but unlike gold, Bitcoin is easily transferable, inherently digital, and rapidly gaining acceptance as a store of value among institutions and individuals worldwide.
"As Bitcoin continues to appreciate, its value now approaching $100,000, the argument for its inclusion in national reserves grows stronger. A strategic Bitcoin reserve would place the UK at the forefront of financial innovation, ensuring that it retains its status as a global financial hub," says Green.
He explains the benefits of a Bitcoin reserve extend beyond simple asset appreciation. By holding Bitcoin, the UK government could diversify its reserves, reduce reliance on traditional fiat currencies, and increase fiscal flexibility.
"Imagine a future where a fraction of the nation’s debt could be offset by the meteoric rise of its Bitcoin holdings. This is not just a hedge but a proactive step toward economic resilience," says Green.
The deVere boss also believes that such a move would signal to the world that the UK is committed to embracing the future of finance. It would attract crypto entrepreneurs, blockchain innovators, and digital asset investors to Britain, creating jobs and promoting growth in one of the most dynamic sectors of the global economy."
"The US is already seemingly moving forward, and other nations are exploring similar strategies. If the UK fails to consider this, it risks being left behind in a financial landscape that is rapidly becoming digital-first," adds Green.