As the UK economy struggles to grow, some are suggesting the Treasury should look elsewhere for funds. One option on the table is to sell the bitcoin (BTC-USD) seized from criminal activity to help get the deficit under control.
Last week the Bank of England cut interest rates and predicted UK GDP growth of just 0.75% for the year – half of its 1.5% forecast in November. Chancellor Rachel Reeves is calling for stronger economic growth.
"This rate cut is a good thing, it eases financial pressure on families and makes business loans cheaper. But we need to go for better growth rates," Reeves said. "That’s why we are removing unnecessary barriers and investing in infrastructure projects, including roads and rail."
The UK’s national debt is around £2.8 trillion – the same as the country’s GDP. The 2008 financial crash and the COVID-19 pandemic have added to that. Attempts to balance the books, like national insurance hikes, have been met with criticism.
Selling bitcoin might help. But how much does the UK government hold? According to data analytics firm Arkham, the UK government has 61,245 bitcoins. Most of this was from a high-profile seizure related to international money laundering.
In 2018 authorities seized bitcoin from a property and safety deposit box, but it wasn’t until 2021 that it was confirmed as the biggest crypto seizure in UK history. In 2024 money launderer Jian Wen was convicted, and the Crown Prosecution Service got a freezing order on her assets, including bitcoin worth around £2 billion at the time. That’s now worth around $4.8 billion.
Crime proceeds assets are split between the Home Office and law enforcement, but recovery costs and victim compensation reduce the amount available for government use.
Bitcoin’s value has gone up and doubled in the past year. It’s currently trading at $97,000 per coin and hit a record $109,000 in January 2025. In June 2024 Germany started selling bitcoin seized from criminal activity, and now there’s pressure on the UK government to do the same.
Although bitcoin’s value is going up, the UK government has been silent on its crypto strategy. Former US President Donald Trump proposed a national bitcoin reserve, but the UK Treasury has no such plans. Labour peer Lord Livermore recently confirmed there’s no plan to have a strategic Bitcoin reserve.
With bitcoin at a record high and other governments selling their holdings, the UK has a decision to make – cash in on the current market or hold onto its crypto assets for future gains. The Treasury’s next move will decide how the UK approaches digital assets for years to come.
The UK government's bitcoin holdings present a significant opportunity, but uncertainty remains regarding their strategic approach to digital assets. While selling bitcoin could provide immediate financial relief, market volatility and regulatory concerns make it a complex decision.
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