Kwasi Kwarteng Backs Bitcoin Amid UK Economic Struggles

Former UK Chancellor Kwasi Kwarteng advocates for Bitcoin as a solution to the UK's 'fiscal trap' and takes a leadership role at Stack BTC.

In an interview with CoinDesk, former UK Chancellor Kwasi Kwarteng admitted that the so-called “mini-budget” was prepared in haste—just weeks after he took office—which limited the opportunities for coordination and analysis. The consequences were significant: a sharp spike in British government bond yields and the exposure of weaknesses in the pension system related to Liability-Driven Investment (LDI) strategies.

Despite this, Kwarteng continues to defend the core idea behind the policy, warning that the United Kingdom is caught in a “fiscal trap” where spending exceeds revenue, and tax increases undermine economic incentives.

Criticism of Short-Term Thinking

Kwarteng leveled criticism at both politicians and markets for their dominant short-term horizons. He argued that decisions are increasingly driven by quarterly results and momentary reactions rather than strategic planning.

This perspective shapes his new interest in digital assets. According to him, institutions like the Bank of England are aware of the crypto sector’s development, but adoption remains limited. He also noted a difference in approach between the UK and Europe, where cities like Paris demonstrate a greater openness to innovation.

Kwarteng also challenged criticisms of Bitcoin made by former Prime Minister Boris Johnson, who described it as a “Ponzi scheme,” calling instead for a more open approach to this new form of money.

A New Beginning in the Crypto Sector

The former Chancellor is already putting these ideas into practice through his involvement with Stack BTC, where he serves as CEO. The company follows a model of corporate accumulation of the leading digital asset and already holds dozens of BTC on its balance sheet.

The initiative is also attracting political attention. Nigel Farage has acquired approximately a 6% stake in the company, highlighting the intersection between politics and digital assets in the UK.

For Kwarteng, this transition reflects a broader shift—from reactive economic policy to the search for more sustainable, long-term solutions. At the center of this vision is the idea that new forms of money can play a role in rethinking the financial system amid rising debt and structural economic challenges.

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