Pakinomist – Policymakers in Germany are considering options required for the country to adopt (BTC) and become competitive in the digital currency space. This was part of the discussions at a recent Blockchain Roundtable in the German Parliament. Patrick Hansen, Circle’s Senior Director for EU Strategy & Policy, 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 approach it.
First, Lindner proposed that the German government issue bonds on the blockchain. This involves using blockchain technology to issue government bonds for efficiency and transparency in the bond market. The move would place Germany as a leading nation in that regard.
Another possibility would involve Germany or the EU deciding to hold Bitcoin as a strategic reserve asset. If adopted, it would align with recent interest from governments across the globe to adopt the asset as a store of value and hedge 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 opportunities 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 ETF and offers BTC via Exchange Traded Notes (ETN) or Exchange Traded Commodities (ETCs).
Is Germany regretting its Bitcoin sale?
This recent blockchain roundtable hosted by the German Federal Parliament came about six months after authorities engaged in massive Bitcoin sales. In July 2024, authorities began selling around 50,000 BTC in their stash, which they confiscated from operators of the Movie2k piracy website.
The unloading of the large amount of Bitcoin into the market affected the price of Bitcoin tremendously, with the asset falling from around $70,000 to $56,000.
At the time of writing, Bitcoin is trading hands at $94,888.47 as it struggles to regain the $100,000 mark. Some analysts believe that Bitcoin is currently in the distribution phase and that the price will rise once it is over.
