UK Considers $7B Bitcoin Sale Amid Budget Strain

The UK government is considering selling over 61,000 seized Bitcoin, currently valued at around $7 billion, to help address a major budget deficit exacerbated by rising borrowing costs and economic stagnation. Most of the Bitcoin was confiscated in 2018 from a Chinese Ponzi scheme and has since greatly appreciated in value. Chancellor Rachel Reeves is leading the initiative, but legal challenges from fraud victims and international claimants are delaying immediate liquidation. Critics warn of potentially repeating the 1999 gold sale mistake by selling before further price appreciation. Crypto industry advocates argue that a large-scale Bitcoin sale could undermine the UK’s fintech ambitions. The government is working on a secure framework for storing and selling digital assets, with the sale’s timing and outcome still uncertain due to ongoing legal and policy debates.