- Christian Lindner, leader of Germany's FDP, urges to adopt Bitcoin
- Germany and Europe risk falling behind
- Germany has been cautious with crypto and faced criticism before
Christian Lindner, leader of Germany's FDP, urges to adopt Bitcoin
Many EU members follow other countries' steps and adopt the pro-crypto mentality. The former Finance Minister of Germany urges the country to do the same. He advocates for Bitcoin and urges the ECB and Bundesbank to adopt Bitcoin in their reserves.
The country is preparing for parliamentary elections in February, and the leader of the Free Democratic Party steps up as a Bitcoin advocate who urges to change cryptocurrency policies. He calls for the European Central Bank and the German Bundesbank to follow the US' lead and include Bitcoin and other cryptocurrencies in their reserves[1].
Bitcoin's market had a big year and seems to have stabilized after the record bull run. C. Lindner for a while has been pushing for the adoption that could make a massive wave of great changes for Germany. The country recently sold confiscated Bitcoin and ended up mising on $2,7 billion due to the surge in Bitcoin price.
These moves deeper into the cryptocurrency industry could strengthen financial resilience and keep pace with global trends. Even though C. Lindner pointed only to the US, where D. Trump and his upcoming administration are looking to adopt a progressive approach to crypto, Europe is not leaving that far behind.
The President-elect of the US started the discussion about incorporating Bitcoin into the Federal Reserve's reserves alongside traditional assets; the politician talked about his plan to become a pro-Bitcoin country. However, Germany is already recognized as one of the most crypto-friendly nations.
Germany exempts crypto profits under €600 from taxation. Holding crypto for over a year also exempts it from taxes, regardless of how it was earned. Portugal does not tax cryptocurrency gains, making it an attractive destination for crypto investors.
Slovenia has also been proactive in blockchain adoption, launching a national test blockchain infrastructure (Sl-Chain) in 2019. In August 2021, the Slovenian Finance Authority proposed a 10% tax on cryptocurrency income, indicating a move toward formal regulation.
However, the EU has not officially adopted Bitcoin or other cryptocurrencies as reserve assets. The European Central Bank and other financial authorities continue to assess the implications of such moves. There are some factors like financial stability, regulatory challenges, and economic impact to consider.
Germany and Europe risk falling behind
Bitcoin could strengthen financial reserves, and Germany might want to take the lead in digital finance, but what exactly is C. Lindner pushing for? FDP issued a "crypto-centric manifesto" with essential points[2].
The program mentions the rising importance of digital assets and focuses on economic modernization via blockchain technology and decentralized finance. C. Lindner praised the US for the progressive measures regarding cryptocurrency.
Also, while congratulating Trump's administration and its crypto-friendly policies, he criticizes German political leaders for ignoring the global shift toward digital assets. "I don’t hear anything about this in the central debates of the German Bundestag," he said.
The former Finance Minister of Germany thinks adding Bitcoin to Germany’s financial reserves could help make the country’s economy stronger. He also warned that Europe might fall behind countries like the U.S. if it doesn’t start taking cryptocurrencies seriously as part of global finance[3].
This idea is similar to what’s being discussed in the U., where Senator Cynthia Lummis suggested a plan for the Treasury to buy 5% of all Bitcoin. Even though experts like Jeff Park from Bitwise Invest think this is unlikely, more people see cryptocurrency as an essential and valuable asset.
Germany has been cautious with crypto and faced criticism before
FDP has been pushing for crypto adoption for a while, and these recent moves focus on the importance of digital assets, but Germany has been playing safe. The country's approach to cryptocurrency has been cautious, and industry stakeholders have critiqued the government because of their reluctance to adopt digital assets fully.
Earlier this year, the German government sold about 50,000 Bitcoins that had been seized from the piracy movie site Movie2k.to. The funds were transferred and sold over nearly four weeks, from mid-June to early July.
During this time, German MP and Bitcoin advocate Joana Cotar urged the government to consider using Bitcoin as a strategic reserve currency, arguing it could help safeguard against risks in the traditional financial system. Her calls, however, were ignored.
J. Cotar also organized the "Bitcoin Strategies for Nation States" event, where she collaborated with Samson Mow, CEO of Bitcoin tech firm Jan3, to explore Bitcoin’s potential as a financial tool for Germany. The event brought together Members of Parliament and Bitcoin supporters to discuss how the cryptocurrency could benefit the nation.
Despite these efforts, the government has stayed silent on the issue. Interestingly, when the Bitcoins were sold, the price was around $53,000 per coin. With Bitcoin now valued at over $107,000, Saxony’s decision to sell early cost an estimated $2.7 billion—a significant missed opportunity.
Bitcoin's price has declined to $93k from the all-time high of $108,000 in the middle of December[4]. However, some experts predict that Bitcoin should stabilize between $92,000 and $97,000 soon. With this call for change in Germany, C. Lindner and his party might help position the country as the leader in the industry.
