Former finance minister urges German central bank to consider Bitcoin as a reserve asset
Former German Finance Minister Christian Lindner has advocated for including cryptocurrencies like Bitcoin in the European Central Bank and Bundesbank reserves to strengthen financial resilience and keep pace with global trends.
According to the German media outlet Handelsblatt, Lindner pointed to the United States, where the incoming Donald Trump-led administration is looking to adopt a progressive approach towards crypto-assets, including discussions about incorporating Bitcoin into the Federal Reserve’s reserves alongside traditional assets like gold.
Lindner highlighted that cryptocurrencies now make up a significant share of global wealth growth and warned that Germany and Europe risk falling behind if they don’t take similar steps.
He believes adding Bitcoin to the country’s reserves could help fortify the financial stability of central bank holdings—an idea recently floated by many political figures around the globe.
Lindner, who leads the Free Democratic Party, made his remarks ahead of the German parliamentary elections in February. The FDP has long been lobbying for crypto adoption, with its latest election manifesto stressing the importance of digital assets.
On the contrary, Germany’s approach to cryptocurrencies has been notably cautious and has faced criticism from industry stakeholders for its reluctance to fully embrace digital assets.
Earlier this year, the German government sold around 50,000 BTC seized from the piracy movie site Movie2k.to, following which authorities transferred and sold the funds over a span of nearly four weeks, from mid-June to early July.
At the time, the government ignored calls from German MP and Bitcoin advocate Joana Cotar, who instead pitched the idea of adopting BTC as a strategic reserve currency to protect against potential risks in the traditional financial system.
Cotar also spearheaded the “Bitcoin Strategies for Nation States” event, featuring Samson Mow, CEO of Bitcoin technology firm Jan3. The event brought together Members of Parliament and Bitcoin supporters to discuss the bellwether crypto asset’s potential as a financial tool for the country.
Yet, despite these efforts and growing advocacy, the current government has largely remained quiet on the matter.
Skepticism over bitcoin reserve plans
Policymakers in Germany aren’t the only ones reluctant to embrace Bitcoin as a reserve asset. Japan’s government recently dismissed calls to adopt Bitcoin as part of its foreign exchange reserves, citing concerns over volatility and a limited understanding of global adoption trends.
South Korea is also taking a similar approach, as hinted by Chairman of the Financial Services Commission, Kim Byung-hwan, who said the nation will monitor developments in the U.S. to assess how the adoption of Bitcoin as a reserve asset unfolds before making any definitive policy decisions.
However, some believe the U.S. might not follow through with its Bitcoin reserve plans even though a bill introduced by Senator Cynthia Lummis proposes that the government acquire approximately 5% of the total Bitcoin supply over a set period.
According to CryptoQuant analyst Ki Young Ju, it is unlikely that Bitcoin will be adopted as a reserve asset unless its global economic dominance is genuinely threatened.
With the dollar maintaining its status as the world’s primary reserve currency and U.S. economic strength remaining largely unchallenged, Young Ju believes there’s little incentive for policymakers to pivot toward Bitcoin.
Meanwhile, odds of whether the U.S. will approve a Strategic Bitcoin Reserve within Trump’s first 100 days have dropped to 29% on prediction platform Polymarket.
