Former German Finance Minister Advocates for Adding Bitcoin to Reserves
Christian Lindner, leader of the Free Democrats (FDP) party, has expressed support for diversifying Germany’s reserves by including Bitcoin, according to a recent Handelsblatt report. The former finance minister believes that the European Central Bank (ECB) should also consider this approach.
Lindner points out that the U.S. is contemplating the idea of making Bitcoin a federal reserve asset, which is why he thinks Germany should consider doing the same. The 45-year-old politician doesn’t want Germany to fall behind in the crypto space.
Lindner believes that Bitcoin could help strengthen Germany’s reserves. This comes amid ongoing discussions in the U.S. about whether Bitcoin should be part of its official reserves, especially after Senator Cynthia Lummis proposed a bill to allow the Treasury to purchase 5% of Bitcoin’s total supply. Despite this, experts like Jeff Park from Bitwise Invest have suggested there’s only a 10% chance of the U.S. government creating a Bitcoin reserve in 2024.
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Bitcoin Volatility
While Bitcoin is widely adopted by institutions, its price volatility remains a concern, which may prevent it from becoming a reserve asset in major economies. However, Lindner downplays this issue, arguing that precious metals are also volatile but still part of reserve holdings.
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