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Policymakers in Germany are studying the options that the country should adopt Bitcoin (BTC) and become competitive in the field of digital currencies. This formed part of recent discussions at a roundtable on blockchain in the German Parliament. Patrick Hansen, Senior Director of EU Strategy and Policy at Circle, revealed this in an article mail On X.
Proposed German strategic approach to Bitcoin adoption
According to the publication, the country's former finance minister, Christian Lindner, highlighted three crucial ways to deal with it.
First, Lindner suggested that the German government issue bonds on the blockchain. This includes using blockchain technology to issue government bonds to bring efficiency and transparency to the bond market. This step would place Germany as a leading country in this regard.
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The second option could involve Germany or the European Union deciding to hold Bitcoin as a strategic reserve asset. If agreed, it would be in line with recent interest by governments around the world to embrace the asset as a store of value and hedge against inflation.
Another route, the third option suggested by Lindner, is for Germany to enable exchange-traded funds (ETFs) in the EU. This can provide accessible, regulated and widespread investment options for both institutional and individual investors.
The goal is to encourage greater adoption and liquidity in the cryptocurrency market. Currently, the European market lacks a Bitcoin ETF and offers BTC via exchange-traded securities (ETNs) or exchange-traded commodities (ETCs).
Does Germany regret Bitcoin sales?
This latest roundtable organized by the German Federal Parliament came about six months after the authorities engaged in massive talks Bitcoin sales. In July 2024, authorities proceeded to sell about 50,000 bitcoins in their stash, which they confiscated from operators of the piracy site Movie2k.
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The dumping of this large volume of Bitcoin into the market greatly impacted the price of Bitcoin, with the asset falling from around $70,000 to $56,000.
As of this writing, Bitcoin is exchange Hands down $94,888.47 and is struggling to reclaim the $100,000 mark. Some analysts argue that Bitcoin is here now Distribution stageThe price will rise once it is finished.
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