With worries about the growth of the UK economy mounting, and data suggesting a slowdown stacking up, some are suggesting the Treasury might want to look to less traditional assets in its arsenal to plug holes in the deficit.
One such solution that has been recommended is turning to selling crypto — specifically bitcoin (BTC-USD) — to raise cash.
Indeed, last week, as the Bank of England cut interest rates it forecast that UK GDP will only grow by 0.75% this year, just half the 1.5% it forecast back in November. Chancellor Rachel Reeves has said she wants stronger rates of economic growth.
“This interest rate cut is welcome news, helping ease the cost of living pressures felt by families across the country and making it easier for businesses to borrow to grow. However, I am still not satisfied with the growth rate. Our promise in our Plan for Change is to go further and faster to kickstart economic growth to put more money in working people’s pockets,” she said.
“That’s why we are taking on the blockers to get Britain building again, ripping up unnecessary regulatory barriers and investing in our country to rebuild roads, rail and vital infrastructure.”
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The national debt currently about £2.8tn according to latest figures, roughly the same as the value of GDP. The current level is more than double that seen from the 1980s through to the financial crisis of 2008.
The combination of the financial crash and the Covid pandemic pushed the UK’s debt up.
Attempts to balance the books with national insurance rises have also led to criticism of the government.
Were the UK government to sell its stock of bitcoin, gleaned through money laundering-related seizures, it could be enough to take the heat off slightly.
It’s not known exactly how much bitcoin the UK government holds, or how it stores it, but estimates last year from data analytics firm Arkham suggest the UK government currently holds 61,245 Bitcoin. It is thought to be largely as a result of the seizure from international money launderer Jian Wen.
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Bitcoin wallets were seized from a house and safety deposit box in October 2018, but it wasn’t until May 2021 that investigators realised that they had made the largest seizure of cryptocurrency ever seen in the UK.
In 2024, the Crown Prosecution Service convicted and sentenced Wen, and obtained a property freezing order against her assets, including the hoard of bitcoin, valued at around £2bn at the time, now worth about $4.8bn.
