The leader of Reform UK is advocating for a bitcoin reserve, tax reductions, and opposition to CBDCs.
According to the Financial Times, during the Digital Asset Summit in London, Nigel Farage unveiled a promising vision for the UK’s digital asset sector, positioning himself as a supporter of the industry. The Reform UK leader stated that he is fully aligned with the movement:
“When it comes to your industry, when it comes to growth in this industry, then I am your champion.”
The strategy proposed by the British politician would represent a major shift for the UK, which has so far maintained a cautious stance toward digital assets. Farage pledged measures to encourage the adoption of bitcoin and other digital assets across the country.
One of his proposals is the creation of a strategic bitcoin reserve funded with £5 billion in bitcoin confiscated by authorities from illegal activities. The Bank of England would be responsible for managing the reserve. The proposed legislation could include provisions allowing UK taxpayers to pay taxes directly in bitcoin, with collected funds either converted into pounds or sent directly to the reserve fund managed by the central bank.
In addition to the reserve, Farage proposes cutting capital gains tax on cryptocurrency investments. The rate would drop from 24% to 10%, making the UK more competitive compared to other European countries. The tax cut aims to encourage traders and investors to operate from the UK.
Farage also opposed the Bank of England’s plans to introduce a central bank digital currency (CBDC), calling the project “the ultimate authoritarian nightmare” and promising to “stop it overnight” if Reform wins the elections.
He criticized the Bank of England’s proposed limits on stablecoin holdings, which would cap individuals at £20,000 and businesses at £10 million. According to Farage, these restrictions are “frankly ridiculous” and hinder innovation.
Reform UK has become the first major UK political party to accept cryptocurrency donations, collecting bitcoin, ether, Solana, and USD Coin through its website.
Despite leading in numerous polls, the UK’s first-past-the-post electoral system hinders translating support into parliamentary seats. In 2024, Reform received 4.1 million votes but won only five seats. The next UK general election is not expected before 2029.
