PakGazette – Policymakers in Germany are considering the options necessary for the country to adopt (BTC) and become competitive in the digital currency space. This was part of the discussions at a recent roundtable on Blockchain in the German Parliament. Patrick Hansen, Senior Director of EU Strategy and Policy at Circle, revealed this in a post on X.
Germany’s proposed strategic approaches to Bitcoin adoption
According to the post, the country’s former Finance Minister Christian Lindner highlighted three critical ways to address it.
First of all, Lindner suggested that the German government issue bonds on blockchain. This involves the use of blockchain technology to issue government bonds to achieve efficiency and transparency in the bond market. The measure would position Germany as a leading nation in that regard.
A second option would involve Germany or the EU deciding to hold Bitcoin as a strategic reserve asset. If agreed, it would align with recent interest by governments around the world in adopting the asset as a store of value and protection against inflation.
Another route, the third option suggested by Lindner, is for Germany to enable Bitcoin exchange-traded funds (ETFs) in the EU. This could provide accessible, regulated and mainstream investment options for both institutional and retail investors.
The goal is to encourage greater adoption and liquidity in the cryptocurrency market. Currently, the European market lacks Bitcoin ETFs and offers BTC through exchange-traded notes (ETN) or exchange-traded commodities (ETC).
Does Germany regret its Bitcoin sales?
This recent blockchain roundtable hosted by the German Federal Parliament came about six months after authorities conducted massive Bitcoin sales. In July 2024, authorities embarked on sales of around 50,000 BTC from their reserve, which they confiscated from the operators of the piracy website Movie2k.
The dumping of that large volume of Bitcoin on the market greatly affected the price of Bitcoin, with the asset falling from around $70,000 to $56,000.
At the time of writing, Bitcoin is changing hands for $94,888.47 as it struggles to reclaim the $100,000 mark. Some analysts are of the opinion that Bitcoin is currently in the distribution phase and that the price will increase once it is over.
