The UK government is reportedly planning to sell billions of dollars worth of Bitcoin (BTC) in a bid to support public spending. This development comes following Bitcoin’s latest success in establishing a new all-time high at $123,091.
UK Chancellor Turns To Crypto Proceeds To Plug Financial Holes – Report
According to a report by local media Telegraph, the UK Home Office is presently exploring means to offload at least £5 billion ($6.71 billion) in seized BTC as the Labor-led government reportedly struggles with financing the public budget following recent policy reversals on welfare and winter fuel allowance by Prime Minister Kier Starmer.
The Telegraph explains that the Chancellor of the Exchequer, Rachel Reeves, is looking to seal a budget hole of £20 billion amid rising inflation figures, higher borrowing costs, and weak economic growth. While some ministers have proposed a rise in taxes to fill this gap, Reeves is currently exploring other means to alleviate the financial mayhem, including sales of confiscated crypto assets from illicit activities.
The exact amount of digital assets seized by the UK government is unknown. However, a specific police operation in 2018 resulted in the impoundment of 61,000 BTC from a Chinese ponzi scheme. These assets, valued just above £300 million ($402.36 million) at the time of seizure, are now worth £5.4 billion ($7.24 million) at the present market rate, representing a resounding 1700% price gain.
UK To Launch Crypto Storage System
In handling the purported BTC offload, Telegraph further reports that the UK Home Office is looking to develop a crypto storage and realization system that will enable law enforcement agents to effectively preserve and sell seized digital assets. Official documents reveal this project is expected to cost £40 million ($53.65 million), with the service provider set to receive a further commission on each asset sale.
Interestingly, it’s worth noting that the UK government has previously kicked against the idea of a National Bitcoin Reserve following suggestions by Nigel Farage, leader of the Reform UK party. But these recent plans may suggest that government figures may now acknowledge crypto assets as a source of significant revenue.
Meanwhile, confiscated crime proceeds are usually split between the UK Treasury and law enforcement agencies. Therefore, it remains unknown what the exact percentage of the reported £5.4 billion BTC sale will be credited to balance the UK government’s books.
At press time, Bitcoin continues to trade at $117,856 following a 0.07% gain in the past day.
Featured image from Unsplash, chart from Tradingview
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