- Columnist Merryn Somerset Webb suggests that the new UK Finance Minister should consider selling the government’s 61,000 Bitcoin reserves
- Contrasting views with countries like El Salvador making Bitcoin an official currency and BlackRock CEO Larry Fink advocating Bitcoin as an investment
- Comparison to past decisions, like the UK selling gold in 1999, and current geopolitical strategies with countries accumulating gold and Bitcoin
Will England Also Sell Its Bitcoins?
As the United States embraces Bitcoin, will England follow in Germany’s footsteps and liquidate its Bitcoin holdings?
England’s Bitcoin Conundrum
After Germany, will England be next to make the mistake of selling its Bitcoins? That’s what Merryn Somerset Webb proposes.
The Bloomberg columnist suggests that the new British Finance Minister should sell the 61,000 Bitcoins the government holds—worth about five billion dollars.
This Bitcoin stash is worth about the same as what the German government just lost. The German government recently sold nearly 50,000 Bitcoins. The sales have had an impact on Bitcoin’s price, but it’s bounced back since Donald Trump gave it his seal of approval.
“Bitcoin isn’t really a currency yet. It’s not an established asset class, and it’s unlikely to be part of the Bank of England’s reserves. Rachel Reeves should sell and use the money for quick wins” she suggests.
Contrasting Views on Bitcoin
Not everyone agrees with this stance. Even the CEO of BlackRock, the President of El Salvador, and even Bhutan have a different opinion. Larry Fink thinks Bitcoin “has a place in an investment portfolio.” His Bitcoin ETF (IBIT) already gets more investments than his ETF backed by the NASDAQ (QQQ).
Moreover, the President of El Salvador made Bitcoin an official currency, and Bhutan invested over 500 million dollars to mine Bitcoins. Cryptocurrencies are absent from Prime Minister Keir Starmer’s manifesto, raising questions about what the new government will do with its BTC.
Bitcoin as a Geopolitical Solution
This situation is reminiscent of 1999 when Chancellor of the Exchequer Gordon Brown sold 400 tons of gold at $275 an ounce. That ounce now costs $2,400. Since then, countries like China and Russia have been stockpiling gold without hesitation. There are even rumors that the BRICS intend to reintroduce the Gold Standard.
Bitcoin is increasingly seen as a solution to geopolitical tensions. It is an absolute store of value and a stateless payment system, possessing all the characteristics the BRICS are looking for. It would be unwise to sell Bitcoins while a new international monetary system is brewing. Donald Trump understands this well.
He knows he can’t avoid a monetary agreement if he truly wants to end the war.
Global Bitcoin Holdings and Strategic Reserves
The BRICS no longer want the dollar, and a new reserve currency will need to be agreed upon. Perhaps that’s why the former US President no longer dismisses Bitcoin.
This Saturday, the Bitcoin conference is the place to be. Word is that Trump will announce the creation of a “strategic Bitcoin reserve.” To put it another way, he’s agreed not to sell the 210,000 Bitcoins the US government already has.
The United States holds the largest state-owned Bitcoin reserve.
China follows with 190,000 BTC, then England, Ukraine (46,000 BTC), El Salvador (5,800 BTC), and Bhutan (621 BTC). Bulgaria sold its 200,000 BTC in 2018. Governments collectively hold 2.46% of the 21 million BTC. This percentage rises to 3.2% if you exclude Satoshi’s Bitcoins and those considered lost.
