Ex-UK Chancellor backs bitcoin as alternative to failing systems

Kwasi Kwarteng, the UK’s former Chancellor of the Exchequer who served just weeks in September 2022, is re-emerging with a new focus on bitcoin, monetary history, and long-term economic thinking.

Reflecting on the infamous mini-budget in an interview with CoinDesk, he was candid about the missteps. “The mini budget was literally two weeks after we took office, it was just very, very rushed business,” he said, referring to the period immediately after taking office on Sept. 6, followed by the death of Queen Elizabeth II two days later. The compressed timeline left little room for coordination or scrutiny. The fallout was severe, sending gilt yields sharply higher and helping expose the UK’s Liability-Driven Investment pension crisis.

Kwarteng still defends the intent behind the policy, warning the UK is now stuck in a fiscal “doom loop” where “you’re spending more money than you can raise in taxation,” and rising taxes ultimately “kill incentives in the economy.”

He also criticised the short-termism dominating both politics and markets. “Everything’s quarterly driven, people are either euphoric or freaking out. And actually, you’ve got to take a longer view.”

That longer view now shapes his thinking on bitcoin and money more broadly. While in office, he said, “the Treasury, the Bank of England are certainly aware of bitcoin and digital assets, but its still incredibly small,” highlighting what he sees as the UK’s reluctance to embrace innovation.

He also pointed to a cultural gap with Europe, noting Paris is becoming “quite forward leaning on digital assets.”
Kwateng also pushed back on criticism from Boris Johnson, after the former prime minister claimed Bitcoin was a “Ponzi,” arguing instead for a more open-minded view of emerging forms of money.

A new bitcoin treasury venture

Now involved with UK bitcoin treasury firm Stack $BTC (STAK) as executive chairman, Kwarteng is putting those ideas into practice, with the company holding 31 $BTC on its balance sheet.

The firm has drawn increasing political attention, with Reform UK leader Nigel Farage taking a 6% stake in the company.

For Kwarteng, the shift reflects a move away from reactive policymaking toward what he sees as a more resilient monetary future grounded in long-term thinking.