PK Press Club – German policymakers are considering the options needed 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 at the German Parliament. Patrick Hansen, senior director of European strategy and policy at Circle, revealed this in an article on X.
Germany’s Proposed Strategic Approaches to Bitcoin Adoption
According to the post, the country’s former finance minister, Christian Lindner, highlighted three crucial ways to approach this problem.
First, Lindner suggested that the German government issue bonds on the blockchain. This involves using blockchain technology to issue government bonds for the sake of efficiency and transparency in the bond market. This move would position Germany as a leading country in this 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 from governments around the world to embrace the asset as a store of value and protect against inflation.
Another path, the third option suggested by Lindner, is for Germany to allow Bitcoin exchange-traded funds (ETFs) in the EU. This could provide accessible, regulated and traditional investment options for institutional and retail investors.
The aim is to encourage greater adoption and liquidity in the cryptocurrency market. Currently, the European market does not have a Bitcoin ETF and offers BTC via exchange-traded notes (ETNs) or exchange-traded commodities (ETCs).
Does Germany regret its Bitcoin sales?
This recent blockchain roundtable hosted by the German Federal Parliament took place about six months after authorities embarked on massive Bitcoin sales. In July 2024, the authorities embarked on the sale of approximately 50,000 BTC from their reserve, which they confiscated from the operators of the Movie2k piracy site.
The dumping of this large volume of Bitcoin into the market had a huge impact on the price of Bitcoin, with the asset dropping from around $70,000 to $56,000.
At the time of writing, Bitcoin is trading at $94,888.47 as it struggles to reclaim the $100,000 mark. Some analysts believe that Bitcoin is currently in the distribution phase and that the price will increase once this is over.
