tl;dr
The UK government is considering selling its $6.27 billion worth of Bitcoin, obtained from seizing coins belonging to a convicted money launderer, to address fiscal deficits. Experts suggest selling the Bitcoin due to its volatility, with the Chancellor of the Exchequer under pressure to make a deci...
The UK government is contemplating selling its $6.27 billion worth of Bitcoin, acquired from seizing coins belonging to a convicted money launderer, in order to address fiscal deficits. Experts advise immediate sale due to Bitcoin's volatility, with pressure on the Chancellor of the Exchequer to decide on the timing. If sold, the proceeds would be returned to the public purse, mirroring Germany's actions last year.
The UK could potentially sell its multi-billion dollar trove of Bitcoin (BTC) to plug holes in its finances, according to accounting giant RSM. The UK government holds about $6,270,000,000 worth of Bitcoin, most of it seized from convicted money launderer Jian Wen. Insiders instruct the UK's Chancellor of the Exchequer, Rachel Reeves, to consult with experts on when to sell the BTC to achieve the best deal for the British taxpayer.
Chris Etherington, a partner at accounting firm RSM, asserts, "There is a strong case for selling the Bitcoin right away. The currency is too volatile, too speculative. Rachel Reeves will be looking at it given the political pressure she is under as she waits for the Office For Budget Responsibility forecasts. Germany cashed in last year. Let’s face it – it is a get out of jail free card for her." Lawyer Quentin Hunt explains, "It gets paid back into the public purse to the Consolidated Fund, which is where all the monies go to which are effectively seized. That money is managed by the Treasury – so it effectively goes back into the public purse." Last year, the German government sold off 50,000 of its BTC under similar circumstances.