German policymakers are increasing their efforts to integrate blockchain and Bitcoin into their financial system. In a recent Blockchain Roundtable organized by Fraktion der Freien Demokraten and Frank Schäffler, members of parliament and resource persons explored some important proposals that could help the government achieve its goal.
The round table discussion held in the German parliament, attracted the participation of key German decision-makers, including Christian Lindner, a former finance minister, and Patrick Hansen, a Circle executive.
Germany’s Bitcoin initiative: Lindner recommends next steps
Former finance minister Christian Lindner was one of the guests at the Blockchain Roundtable and discussed at length what the German government can do to speed up its immersion in blockchain and Bitcoin.
Blockchain Roundtable in the German Parliament 🇩🇪
Former Minister of Finance @c_lindner outlined three potential next steps for Germany/EU to compete in this area:
1️⃣ Issuing German government bonds on the blockchain
2️⃣ Bring up the discussion of a strategic #Bitcoin book
3️⃣… pic.twitter.com/awRpYrf2bI— Patrick Hansen (@paddi_hansen) 10 January 2025
According to Lindner, there are three ways for the government to compete in this industry. First, the German government can issue bonds on the blockchain. Second, it could encourage discussions and debates about creating a German Bitcoin reserve. If this happens, Germany may follow the lead of other countries that actively pursue Bitcoin as a reserve.
Third, it may allow Bitcoin ETFs in the European Union, which is currently limited to ETCs/ETNs. Authorizing the trading of spotbitcoin ETFs will provide retail investors with a convenient way to invest in institutional and highly regulated investment options, increasing blockchain adoption in the region.
Germany Hastened From Its Bitcoin Loss In 2024?
Interestingly, the German government controlled 50,000 Bitcoins last year. In January 2024, Bitcoins were seized from the website Movie.2k.com, which operates pirated movies. Around 50,000 Bitcoins were seized as part of the operation, and these were put up for sale between June 19 and July 12 last year at the price of $53,000 per Bitcoin. These transactions generated over $2.8 billion for the German government.
However, not everyone was happy with the results after seeing Bitcoin’s price surge that began weeks after the completed transactions. Weeks after the transaction, Bitcoin rose to $88,000, and when the United States elected Donald Trump for its second administration, Bitcoin had already topped the $100k mark.
According to market observers, Bitcoin’s impressive price reached over $100,000 in just a few months, highlighting the impact of Germany’s early sales and underscoring the importance of having a Bitcoin policy.
Germany’s renewed interest in Bitcoin
With Bitcoin trading over $90,000 and a pro-Bitcoin Trump As they take office in the US, many commentators and analysts expect better days ahead for the blockchain and digital assets. And German policymakers are making up lost ground by revisiting discussions to push a Bitcoin program. For example, speaking at the Bundestag last December, Lindner reflected on the government’s “missed opportunity” in Bitcoin. He also shared that the US is ready to implement its Bitcoin policy under Donald Trump.
Featured image from Pexels, chart from TradingView
