German policymakers are ramping up their efforts to integrate blockchain and bitcoin into its financial system. In a recent blockchain roundtable organized by Fraction der Freien Democraten and Frank Scheffler, parliamentarians and resource persons explored some key proposals that could help the government achieve its objective.
The Roundtable discussion Held in the German parliament, it drew attendance from key German policymakers, 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 extensively what the German government can do to fast-track its immersion in blockchain and bitcoin.
Blockchain Roundtable in the German Parliament 🇩🇪
Former Finance Minister @c_lindner Three possible next steps for Germany/EU to compete in this space are outlined:
1️⃣ Issue German government bonds on blockchain
2️⃣ Pick up the discussion on a strategy #Bitcoin Reserve
3️⃣… pic.twitter.com/awRpYrf2bI— Patrick Hansen (@paddi_hansen) January 10, 2025
According to Lindner, the government has three ways to compete in this industry. First, the German government could issue bonds on the blockchain. Second, it could stimulate discussions and debates on the creation of a German bitcoin reserve. If that happens, Germany could lead other countries to actively pursue bitcoin as a reserve.
Third, it could allow Bitcoin ETFs in the European Union, which is currently limited to ETCs/ETNs. Allowing trading of spot Bitcoin ETFs will provide a convenient way for retail investors to invest in institutional-grade and highly regulated investment options, thereby boosting Blockchain adoption in the field.
Is Germany Recovering from Its Bitcoin Loss in 2024?
Interestingly, the German government controlled 50,000 Bitcoins last year. In January 2024, Bitcoins were seized from Movie.2k.com, a website that operates pirated movies. About 50,000 bitcoins were seized as part of the operations, and were put up for sale between June 19 and July 12 last year at a price of $53,000 each. Bitcoin. These transactions generated more than $2.8 billion for the German government.
However, not everyone was happy with the outcome after seeing the Bitcoin price spike that started weeks after the transactions were completed. Weeks after the transaction, Bitcoin rose to $88,000, and by the time the United States elected Donald Trump for its second administration, Bitcoin had already topped the $100k mark.
According to market observers, the effective price of Bitcoin exceeded $100k in a few months, highlighting the impact of Germany’s initial sell-off and the importance of Bitcoin policy.
Germany’s New Interest in Bitcoin
Bitcoin trading above $90k and a Pro-Bitcoin Trump After taking office in the US, many commentators and analysts expect better days ahead for blockchain and digital assets. And German policymakers are making up for lost ground by revisiting discussions to advance the Bitcoin program. For example, Lindner spoke in the Bundestag last December, citing the government’s “missed opportunity” in bitcoin. He also shared that the US is ready to implement its Bitcoin policies under Donald Trump.
Featured images from Pexels, charts from TradingView
