Former finance minister urges German central bank to consider Bitcoin as a reserve asset

Former German Finance Minister Christian Lindner has advocated for the inclusion of cryptocurrencies like Bitcoin in the reserves of the European Central Bank and the Bundesbank to strengthen financial resilience and keep pace with global trends .

According to the German media Handelsblatt, Lindner sharp in the United States, where the new administration led by Donald Trump is seeking to take a progressive approach towards cryptoassets, including discussions on incorporation Bitcoin in Federal Reserve reserves alongside traditional assets like gold.

Lindner highlighted that cryptocurrencies now account for a significant share of global wealth growth and warned that Germany and Europe risk falling behind if they do not take similar steps.

He believes adding Bitcoin to the country’s reserves could help strengthen the financial stability of the central bank’s holdings – a recent idea. fleet by many political figures from around the world.

Lindner, who heads the Liberal Democratic Party, made the remarks on the eve of Germany’s parliamentary elections in February. The FDP has long pushed for crypto adoption, with its latest election manifesto highlighting the importance of digital assets.

On the contrary, Germany’s approach to cryptocurrencies has been particularly cautious and has been criticized by industry players for its reluctance to fully embrace digital assets.

Earlier this year, the German government sold around 50,000 BTC seized from movie piracy site Movie2k.to, after which authorities transferred and sold the funds over a period of nearly four weeks, from mid-June at the beginning of July.

At the time, the government ignored calls by German MP and Bitcoin advocate Joana Cotar, who instead floated the idea of ​​adopting BTC as a strategic reserve currency to protect against potential risks of the traditional financial system.

Cotar also led the “Bitcoin Strategies for Nation States” eventwith Samson Mow, CEO of Bitcoin technology company Jan3. The event brought together MPs and Bitcoin supporters to discuss the crypto asset’s potential as a financial tool for the country.

Yet despite these efforts and growing advocacy, the current government has remained largely silent on the issue.

Skepticism about Bitcoin reserve plans

German policymakers are not the only ones hesitant to adopt Bitcoin as a reserve asset. The Japanese government recently rejected calls for adopting Bitcoin as part of its foreign exchange reserves, citing concerns about volatility and a limited understanding of global adoption trends.

South Korea is also taking a similar approach, as suggested by Financial Services Commission Chairman Kim Byung-hwan, who said the country will monitor developments in the United States to assess how the adoption of Bitcoin as a reserve asset is going before making final policy decisions.

However, some believe the United States may not follow through on its Bitcoin reserve plans even if a bill introduced Senator Cynthia Lummis is proposing that the government acquire approximately 5% of the total Bitcoin supply over a specified period of time.

According to CryptoQuant analyst Ki Young Ju, this is unlikely that Bitcoin will be adopted as a reserve asset unless its global economic dominance is truly threatened.

While the dollar maintains its status as the world’s primary reserve currency and the economic strength of the United States remains largely unchallenged, Young Ju believes there is little incentive for policymakers to turn to Bitcoin.

Meanwhile, the chances of the United States approving a strategic Bitcoin reserve within Trump’s first 100 days have diminished. abandoned at 29% on the Polymarket prediction platform.