U.Today - Policymakers in Germany are considering options required for the country to adopt Bitcoin (BTC) and become competitive in the digital currency space. This formed part of the discussions at a recent Blockchain Roundtable in the German Parliament. Patrick Hansen, Circle’s Senior Director of EU Strategy & Policy, revealed this in a post on X.
Germany’s proposed strategic approaches for Bitcoin adoption
According to the post, the country’s former finance minister, Christian Lindner, highlighted three critical ways to approach it.First, Lindner suggested that the German government issue bonds on the blockchain. This involves using blockchain technology to issue government bonds for efficiency and transparency on the bond market. The move 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 upon, it would align with the recent interest by 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 options for both institutional and retail investors.
The goal is to encourage greater adoption and liquidity on 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 sales?
This recent blockchain roundtable organized by the German Federal Parliament came about six months after the authorities engaged in massive Bitcoin sales. In July 2024, the authorities embarked on sales of about 50,000 BTC in its stash, which it confiscated from operators at the Movie2k piracy website.The offloading of that large volume of Bitcoin onto the market hugely impacted the price of Bitcoin, with the asset declining from around $70,000 to $56,000.
As of this writing, Bitcoin is exchanging hands for $94,888.47 as it struggles to reclaim the $100,000 mark. Some analysts opine that Bitcoin is currently in the distribution phase, and the price will pick up once it is over.