In a recent discussion at Bitcoin 2025 in Las Vegas, Michael Saylor, co-founder of a prominent investment firm, raised the possibility of the Bank of England incorporating Bitcoin into its reserve assets. This significant remark was made as part of a broader conversation on cryptocurrency held during the event, which also included insights from Nigel Farage, the leader of Reform UK.
Farage introduced an exciting initiative where Reform UK is advocating for the Bank of England to maintain what he termed a “Bitcoin digital reserve.” Furthermore, he proposed legislation to significantly reduce the capital gains tax on crypto investments, from a substantial 24% to a more attractive 10%.
The Significance of Bitcoin Reserves
Saylor posited that Bitcoin represents the “ultimate form of capital.” He suggested that investors should consider reallocating resources from traditional currencies and bonds to cryptocurrencies as a safer investment strategy. His firm has been actively acquiring Bitcoin for a considerable period, indicating strong confidence in its long-term value.
Could the Bank of England be preparing to integrate Bitcoin into its reserves? pic.twitter.com/8mdXj0SZ5l
— Michael Saylor (@saylor) May 30, 2025
Recent developments indicate that US regulators have begun allowing banks to engage in the holding and trading of cryptocurrencies, which opens the door for institutional involvement in the crypto landscape. Should the Bank of England proceed with purchasing Bitcoin, it would signify a transformative moment in financial policy, potentially reshaping public perception of digital currencies and their role in mainstream finance.
Reform UK’s Bold Crypto Strategy
In a pioneering move, Reform UK has embraced crypto donations, positioning itself as the first political party in the UK to do so. Farage emphasized that banks should not restrict accounts for individuals engaging in crypto trading.
Additionally, he proposed allowing citizens to settle tax obligations using Bitcoin. The proposed Crypto Assets and Digital Finance Bill aims to establish new regulations to safeguard crypto users while motivating businesses to introduce crypto-related services.
Zia Yusuf, chairman of Reform UK, highlighted that reducing taxes on cryptocurrencies has the potential to attract affluent entrepreneurs back to Britain, a trend he noted has seen many wealthy individuals relocating to jurisdictions with more favorable tax conditions.
Tax Incentives to Entice Investment
Current discussions reveal that Reform UK aims to slash capital gains tax on cryptocurrencies from 24% to a mere 10%. Yusuf argued that this pivotal change could potentially reverse the trend of talent migrating away from the UK.
If businesses can retain a larger share of their earnings, they may choose to expand operations in the UK, leading to increased employment opportunities and a surge in tech startups. However, some critics raise concerns about the fiscal implications of such tax cuts, suggesting it could create budgetary challenges for the government and necessitate alternative funding sources or service reductions.
Image courtesy of Unsplash, data visual from TradingView
