Nigel Farage Pushes for UK Bitcoin Reserve, Pledges Lower Crypto Taxes and Banking ReformsNigel Farage, the former UKIP leader and political figure known for his outspoken views, is now turning his attention toward digital finance. In a recent proposal, Farage presented himself as a strong supporter of cryptocurrency and blockchain innovation, describing the sector as a “key pillar for the UK’s future economy.”His plan centers around creating a UK national Bitcoin reserve—a move that would position Britain as one of the first major economies to officially hold Bitcoin as part of its financial assets. The proposal involves allocating approximately £5 billion from seized criminal funds to purchase Bitcoin. According to Farage, this would both diversify the country’s reserves and symbolize confidence in decentralized technologies that are shaping the next generation of finance.Farage believes this initiative could help the United Kingdom regain its edge as a global financial hub. He argued that “ignoring crypto is no longer an option” and that a proactive approach would attract investors, innovators, and blockchain startups seeking a favorable regulatory environment.Alongside the Bitcoin reserve idea, Farage proposed a reduction of capital gains tax on crypto profits—from 24% down to 10%. This significant cut, he claims, would encourage long-term investment and reward those contributing to the growing digital economy rather than punishing them with high tax rates.
Farage Proposes Bitcoin-Friendly Tax System and Financial Protections for Crypto Users
Beyond establishing a Bitcoin reserve and lowering taxes, Farage also outlined measures aimed at making cryptocurrency a more integrated part of the British economy. One of his most notable ideas is to allow citizens and businesses to pay certain taxes using Bitcoin, a move that would signal the UK’s readiness to embrace digital assets within its official financial system.
He argued that if the government can collect taxes in fiat currency, there’s no reason it can’t also accept Bitcoin—especially as more individuals and institutions begin holding it as a store of value. By enabling tax payments in crypto, Farage envisions a future where blockchain-based payments are treated as normal and legitimate financial transactions within the UK.
To complement this, Farage has called for stronger protections for crypto users and businesses. He criticized traditional banks for closing or restricting accounts connected with legal cryptocurrency activities, labeling such actions as unfair and anti-innovation. His proposal includes new regulations to prevent banks from discriminating against individuals or companies that deal in lawful crypto transactions.
Nigel Farage in Bitcoin ‘25 Conference | Source: The London Economic
According to Farage, the banking system should support innovation instead of stifling it, and he emphasized that Britain has an opportunity to lead in this space rather than fall behind. “We can’t build a modern economy while punishing people for using modern tools,” he reportedly said.
Additionally, in a symbolic step toward adopting the technology he promotes, Farage announced plans for his political movement to become the first in the United Kingdom to accept campaign donations in cryptocurrency. Supporters would be able to contribute using Bitcoin and other digital assets, further demonstrating confidence in the technology’s future.
A New Chapter for Crypto in the UK?
Farage’s proposals mark a bold shift toward recognizing cryptocurrency as part of the national economy. While critics question the practicality of a government-held Bitcoin reserve, supporters view his plan as a potential turning point that could make Britain a hub for blockchain innovation.
Whether these ideas gain political traction or not, Farage’s move signals that crypto is no longer a fringe topic—it’s becoming a serious part of economic discussions shaping the UK’s future.
Source: Cryptonews Edited by Sonarx