Nigel FarageLeader of Reform UK, announced at the Bitcoin 2025 conference in Las Vegas on May 29, 2025, that his party wrote a Cryptographic assets and digital finance invoicewhich includes a proposal for a strategic bitcoin reserve to be holded by the Bank of England. The bill aims to position the United Kingdom as a world crypto hub and includes measures such as:
Reduction in capital gains tax on cryptographic assets from 24% to 10%. Prohibit banks from “debating” customers for having participated in legal transactions from cryptocurrency. Establish a Bitcoin digital reserve in the Bank of England. Oppose the introduction of a digital currency from the Central Bank (CBDC). Farage stressed that the bill would be a key priority for the campaign for Reform UK in the next general elections, expected by August 2029. He said that the party’s objective was to “launch a cryptographic revolution” in the United Kingdom and make London a large world shopping center for digital assets.
United Kingdom reform also became the first British political party to accept donations to Bitcoin and other cryptocurrencies, facilitated by the supplier of crypto payments Radius. However, the British treasure Explicitly said that he did not intend to adopt a Bitcoin strategic reserve, rather focusing on a progressive approach to cryptography regulations prioritize consumer protection and financial stability. The United Kingdom already has 61,245 BTC ($ 6.4 billion), making it the third sovereign Bitcoin holder worldwide, behind the United States and China, according to Bitcoin Treasuries data.
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The farage proposal attracted mixed reactions. Supporters, in particular in the cryptographic community, congratulate the decision as a stage towards traditional adoption, while criticism, including the Prime Minister and the Head of Labor Keir Starmercompared it to economically risky policies, comparing it to the old PM Liz truss’s approach. Reform UK currently holds only five seats in the House of Commons, compared to 403 of Labor and the Conservatives 120, which makes the adoption of the uncertain bill without significant political changes.
The announcement aligns with the broader story of the promotion of individual sovereignty and resistance to centralized financial control, resulting in parallels with its Brexit Advocacy and quoting his experience of debannage in 2023 as a motivation. The bill on cryptographic assets and digital finance proposed by Nigel Farage and Reform UK, including a Bitcoin strategic reserve, could have important implications for the economy, the financial system of the United Kingdom and the global position in cryptographic space.
Bitcoin holding as a strategic reserve could lie against the inflation of fiduciary currency and diversify the financial assets of the United Kingdom, especially if the Bitcoin value continues to increase (currently ~ $ 105,664 per BTC). The existing 61,245 BTCs in the United Kingdom ($ 6.4 billion) could assess, strengthening national reserves. Bitcoin volatility presents risks for budgetary stability. A price accident could devalue the reserve, arousing criticism for speculative investment with public funds. The Treasury Opposition suggests concerns about financial prudence.
Reduction of cryptography gains
The reduction in capital gains tax by 24% to 10% could encourage cryptographic investments, attract individuals with high shuttle and stimulate economic activity in the digital asset sector. However, this can reduce short -term tax revenue, which can potentially reduce public finances, unless it is offset by increased economic activity. Positioning London As a global crypto trading center could attract startups, talents and blockchain investments, stimulating the UK fintech sector. This is aligned with post-Brexit objectives to improve financial competitiveness.
Risks include regulatory challenges, as cowardly monitoring could invite fraud or money laundering, while strict rules could dissuade innovation. The ban on banks to debantate crypto users could encourage adoption, but could expose financial institutions to the risks of non-regulated or illegal cryptographic activities, potentially compete with anti-white (AML) regulations.
The bill is a daring decision to differentiate the reform of the United Kingdom Work and conservativesAttractive for younger and warned voters and the growing community of cryptography. Accept Bitcoin donations strengthens this brand image. With only five deputies, the United Kingdom’s reform capacity to adopt the bill is limited unless they get significant seats by 2029 or form alliances. The proposal could galvanize their base but the risks alienating traditional voters are wary of economic experimentation.
The rejection of the Treasury and the Starmer criticism indicate the resistance of the main parties, supervising the bill as fiscally irresponsible. This could polarize the debate, work and conservatives likely to prioritize regulatory prudence on the adoption of daring cryptography. The comparison of Farage with Brexit suggests that it aims to rally the populist feeling, but the traditional political opposition can limit the traction of the bill. If it is adopted, the bill would point out a pro-Crypto position, potentially aligning the United Kingdom with nations like El Salvador, which adopted Bitcoin as a legal call. This could improve diplomatic links with Crypto friendly jurisdictions, but the tension of relations with anti-Crypto regulators as the EU.
A Bitcoin strategic reserve could normalize cryptocurrency in the United Kingdom, encouraging the adoption of retail and institutional sales. This is aligned with the fading account of financial sovereignty, resonating with those skeptical towards the centralized bank. However, public skepticism, fueled by cryptographic scams or volatility, could lead to reactions in reaction if the underperform reserve or if the debannage protections allow illegal activity.
CBDC resistance
Oppose a digital currency of the Central Bank (CBDC) operates concerns about surveillance and government control, using privacy defenders. However, he can conflict with global trends because many countries (for example, China, EU) explore CBDC, potentially insulating the United Kingdom in innovation in digital finance. The proposal could deepen the divisions between technological and libertarians groups and traditionalists or voters opposed to risks. A British Bitcoin reserve could stimulate the global demand for bitcoin, which could increase prices and strengthen its “digital gold” status. This could encourage other nations to consider similar reserves, accelerating institutional adoption.
Conversely, failure or counterpoup could alleviate global confidence in assets of sovereign cryptography. The United Kingdom could jump from competitors in cryptographic space, which questions hubs like Singapore or Dubai. However, regulatory disalemination with the EU or the United States could complicate trade and cross-border cryptographic compliance. If the United Kingdom moves too aggressively without robust regulations, this risks criticism of the international organization as the Financial action working group (GADS)potentially affecting its position in global finance.
The management of a bitcoin reserve would require secure storage (for example, cold wallets) and clear governance to avoid mismanagement or theft, as seen in past cryptography hacks. The limited parliamentary power of Rector UK reform makes the passage unlikely without an electoral change or a major coalition support. To convince a skeptical audience and financial institutions to adopt Bitcoin as a reference will be difficult, in particular given the position of the Treasury and Starmer’s criticism.
The frage bill could position the United Kingdom as a pioneer in cryptography, stimulating economic and attractive innovation for a niche but growing base. However, it faces significant obstacles due to political opposition, economic risks and regulatory complexities. The debate could shape the financial future of the United Kingdom, but its success depends on the reform of the electoral gains of the United Kingdom and the broader acceptance of the public of the cryptocurrency.
