Kwasi Kwarteng, former Chancellor of the Exchequer of the United Kingdom who served only a few weeks in September 2022, re-emerges 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 written literally two weeks after we took office, it was just a very, very rushed affair,” he said, referring to the period immediately after we 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 control. The consequences were severe, leading to a sharp rise in government bond yields and helping to expose the pension crisis linked to liability-driven investing in the UK.
Kwarteng still defends the intention behind the policy, warning that the UK is now stuck in a fiscal “doom loop” where “you spend more money than you can raise in taxes” and raising taxes ends up “killing incentives in the economy”.
He also criticized the short-termism that dominates both politics and markets. “Everything is quarterly, people are either euphoric or panicked. And in fact, you have to see in the longer term.”
This longer-term view now shapes his thinking about bitcoin and money more broadly. During his tenure, he said, “the Treasury and the Bank of England are certainly aware of bitcoin and digital assets, but they remain incredibly small”, highlighting what he sees as the UK’s reluctance to embrace innovation.
He also highlighted a cultural gap with Europe, noting that Paris “is increasingly relying on digital assets.”
Kwarteng also pushed back against criticism from Boris Johnson, after the former prime minister claimed Bitcoin was a “Ponzi”, instead arguing for a more open view of emerging forms of money.
A New Bitcoin Cash Business
Now involved with UK treasury company Bitcoin Stack BTC (STAK) as executive chairman, Kwarteng is putting these ideas into practice, with the company holding 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, this shift reflects a move away from reactive policy in favor of what he sees as a more resilient monetary future, based on long-term thinking.
