A leading figure at cryptocurrency exchange Coinbase has issued an urgent warning that Britain must incorporate Bitcoin into Government reserves within the next year or risk falling behind in the global digital finance revolution.
Tom Duff-Gordon, the vice president of International Policy at the firm, is calling for the Treasury and other state entities to begin accumulating the digital currency as part of their asset portfolios.
His intervention follows Luxembourg Sovereign Wealth Fund announcing plans to allocate one per cent of its holdings to Bitcoin and other cryptocurrencies, while American and German lawmakers engage in serious discussions about similar strategies.
The executive’s warning highlights what he describes as a critical juncture for Britain as countries worldwide move to embrace digital assets.
Mr Duff-Gordon pointed to Luxembourg’s sovereign wealth fund committing millions in Bitcoin and other digital assets as clear evidence of growing international momentum.
He noted that American policymakers have begun serious consideration of similar measures, while members of the German parliament are pushing their country to follow suit.
“So the US has now done that. I think this among the countries, even some German MPs are suggesting to do this. So this is not a kind of completely crazy idea and thought. It’s becoming slowly more mainstream,” he told GB News.
The Coinbase executive emphasised that governments typically maintain diverse reserves, including medicines, gold and cash. He argued that Bitcoin deserves consideration alongside these traditional holdings.
Tom Duff-Gordon
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Tom Duff-Gordon
The policy chief acknowledged that Britain has already fallen behind early adopters in the cryptocurrency space.
“So we described this, and actually, George Osborne said it like this, it’s kind of catching a second wave. So I think we’ve kind of missed the first wave,” Mr Duff-Gordon explained.
Despite that setback, he believes Britain can still recover its competitive position if swift action is taken. However, he warned that failure to seize the current opportunity could prove catastrophic for the future relevance of the City of London.
“You risk a situation where new products, new innovation, things that could be coming and investors say, ‘Hey, I’m just not sure how I’m going to operate this market, but I’ve got clarity over here, so I’m just gonna do my thing over there'”.
The policy chief acknowledged that Britain has already fallen behind early adopters in the cryptocurrency space
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Coinbase
Mr Duff-Gordon set out a case for Bitcoin’s inclusion in national reserves, highlighting its exceptional performance over the past ten years.
He characterised the cryptocurrency as offering protection against currency devaluation and inflationary pressures through its limited supply and independence from Government control.
“We think it’s worthwhile to have exposure to Bitcoin because we think that this is an incredibly exciting new asset class,” he said.
He argued that prudent governance requires considering Bitcoin alongside traditional reserve assets, particularly given its track record, as he said, “the strongest performing financial instrument of the decade.”
He expressed frustration with British politicians who have repeatedly pledged support for making the UK a cryptocurrency hub without delivering concrete measures.
He acknowledged that both Conservative and Labour administrations have articulated the right ambitions but stressed the need for immediate legislative action.
“Successive governments have said the right things. Going back to Rishi Sunak, moving into this Government, what we’re saying now is we have a crucial six to 12 months [to act],” Mr Duff-Gordon said.
He warned that America’s rapid progress in digital asset regulation and tokenisation threatens to leave Britain behind permanently.