Kwasi Kwarteng, former UK Chancellor of the Exchequer who served just a few 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 came into office, it was a very, very rushed affair,” he said, referring to the period immediately after he took office on September 6, followed by the death of Queen Elizabeth II two days later. The compressed schedule left little room for coordination or scrutiny. The consequences were severe, causing bond yields to rise sharply and helping to expose the UK’s liability-driven investment pension crisis.
Kwarteng still defends the intention behind the policy, warning that the UK is now trapped in a fiscal “doom loop” where “more money is spent than can be raised in taxes” and raising taxes ultimately “kills incentives in the economy”.
He also criticized the short-termism that dominates both politics and markets. “Everything moves quarterly, people are euphoric or crazy. And, in fact, you have to take a broader view.”
That broader view now shapes his thinking about bitcoin and money more broadly. While in office, he said, “the Treasury and the Bank of England are certainly aware of bitcoin and digital assets, but they are still incredibly small,” highlighting what he sees as the UK’s reluctance to embrace innovation.
He also pointed out a cultural gap with Europe, noting that Paris is becoming “quite advanced in leaning on digital assets.”
Kwateng also rejected criticism from Boris Johnson, after the former prime minister claimed that Bitcoin was a “Ponzi”, arguing instead for a more open view of emerging forms of money.
A new bitcoin treasury company
Now involved with British bitcoin treasury firm Stack BTC (STAK) as CEO, Kwarteng is putting those ideas into practice, and the company has 31 BTC on its balance sheet.
The company has attracted 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 based on long-term thinking.
