Kwasi Kwarteng revisits UK market turmoil and turns toward Bitcoin
Former UK Chancellor Kwasi Kwarteng is re-entering the debate on economic policy with a renewed focus on Bitcoin, monetary history, and long-term financial stability following his brief stint in office in September 2022.
Reflecting on the controversial mini-budget, Kwarteng acknowledged it was introduced under intense time pressure. Coming just weeks after taking office—and days after the death of Queen Elizabeth II—the package, he said, lacked the necessary time for coordination and detailed review. The market reaction was immediate, with gilt yields surging and vulnerabilities in pension strategies, particularly Liability-Driven Investments, exposed.
Despite the fallout, Kwarteng continues to defend the broader rationale behind the policy. He argues the UK is caught in a fiscal “doom loop,” where public spending persistently exceeds tax revenues. Attempts to close that gap through higher taxes, he warned, risk weakening economic incentives and slowing growth.
He also criticized the short-termism that dominates both politics and financial markets, suggesting that decision-making has become overly reactive and driven by near-term sentiment rather than long-term planning.
This shift toward longer-term thinking now underpins his interest in Bitcoin and alternative monetary systems. During his time in government, Kwarteng said institutions like the Treasury and the Bank of England were aware of digital assets but largely dismissed them as too small to matter—a stance he views as reflective of the UK’s broader reluctance to embrace innovation.
He contrasted this with developments in Europe, pointing to Paris as increasingly forward-leaning in its approach to digital assets. Kwarteng also pushed back against criticism from former Prime Minister Boris Johnson, who had labeled Bitcoin a “Ponzi,” calling instead for a more open-minded evaluation of emerging forms of money.
Now in the private sector, Kwarteng is putting those views into action. As executive chairman of UK-based Bitcoin treasury firm Stack BTC, he is helping guide a strategy centered on holding Bitcoin as a balance sheet asset. The company currently holds 31 BTC and is positioning itself within a growing trend of corporate adoption.
The firm has also drawn political attention, with Reform UK leader Nigel Farage acquiring a 6% stake, underscoring the increasing overlap between digital assets and UK politics.
For Kwarteng, the move into Bitcoin reflects a broader shift—from reactive policymaking toward what he sees as a more resilient, long-term approach to money and economic stability.
