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German MP Joana Cotar Advocates for Bitcoin to Be Recognized as Legal Tender in Germany

Ruholamin Haqshanas
Last updated: | 2 min read
Source: AdobeStock/takashi tamiya

German Bundestag member Joana Cotar has expressed his support for recognizing Bitcoin (BTC) as a legal tender in the country. 

In a recent interview, Cotar shared her ambitions to bring Bitcoin into the mainstream of German finance and discussed her plans to initiate a “preliminary examination” to establish a legal framework for this recognition.

Cotar emphasized the need for a balanced regulatory environment that ensures legal security for companies and citizens while addressing concerns related to money laundering, tax evasion, and other illicit activities associated with Bitcoin.

She aims to strike a balance that supports innovation and the freedom aspects of Bitcoin without stifling its potential.

To drive her cause within the German legislative body, Cotar has launched the “Bitcoin in the Bundestag” initiative. 

The initiative aims to educate her parliamentary peers about the numerous benefits of Bitcoin, enabling more informed legislative decisions. 

Cotar emphasized the importance of promoting the freedom aspects of Bitcoin, including privacy protection, robust security standards, and a regulatory approach that avoids unnecessary restrictions.

Cotar Remains Focused on Bitcoin

Unlike some of her counterparts who take a broader view of the crypto market, Cotar’s focus remains exclusively on Bitcoin. 

She even recommended establishing a formal Bundestag committee that recognizes the technological differences between Bitcoin and other crypto assets while primarily addressing the significance of Bitcoin for German society.

Cotar’s stance also includes her opposition to the digital Euro.

She believes that Bitcoin, with its decentralized nature and potential to enhance financial freedom and privacy, is a more suitable digital asset for the country. 

Cotar also raised concerns about potential surveillance and overreach by central banks, cautioning against the dangers of a digital Euro leading to extensive monitoring of citizens.

She envisions Bitcoin becoming an integral part of Germany’s regulatory framework. 

Her proposal includes accepting Bitcoin for taxes and fees and leveraging Bitcoin mining to stabilize the power grid.

If successful, the recognition of Bitcoin as legal tender in Germany could have significant implications for the country’s monetary ecosystem. 

Germany could emerge as a pioneer in adopting decentralized digital currency at a governmental level, potentially influencing other nations to reconsider their stance on Bitcoin.

Furthermore, such a development could impact Bitcoin’s value. 

The formal endorsement by a major economy like Germany could enhance Bitcoin’s legitimacy and appeal, attracting more institutional and individual investors. 

This increased demand could potentially lead to a more stable and upward trajectory in Bitcoin’s valuation, especially considering Germany’s economic influence in Europe and globally.

El Salvador became the first country in the world to adopt Bitcoin as legal tender. 

On June 8, 2021, the Salvadoran Congress approved a law proposed by President Nayib Bukele to make Bitcoin a legal form of currency in the country. 

The law went into effect on September 7, 2021, making Bitcoin an official medium of exchange alongside the US dollar, which has been the country’s official currency since 2001.