Germany’s Former Finance Minister Slams Government For Ignoring Bitcoin’s Potential

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Veronika Rinecker

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Veronika Rinecker

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Veronika Rinecker is based in Germany and studied international journalism and media management. She specializes in reporting on topics such as politics and regulation, energy, blockchain, and...

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December 17, 2024 09:27 EST

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In his speech in the Bundestag on Dec. 16, Christian Lindner, Germany’s former Finance Minister and leader of the Free Democratic Party (FDP), accused the German government and opposition of missing out on the economic opportunities offered by Bitcoin (BTC).

Lindner specifically called out Chancellor Olaf Scholz, Minister for Economic Affairs Robert Habeck, and the Leader of the Opposition Friedrich Merz for failing to engage with the growing role of cryptocurrencies in global finance.

US Embraces Bitcoin While Germany Falls Behind

Lindner pointed to recent developments in the United States, where the government is introducing pro-crypto policies under the new Trump administration. “I haven’t heard anything from the Chancellor, the Economic Minister, or the Opposition Leader about the new crypto-friendly policies being launched in the US,” Lindner said in his speech.

He argued that the US is capitalizing on the potential of cryptocurrencies. Germany could also benefit from it if only politicians would take it seriously. “I don’t hear anything about this in the central debates of the German Bundestag. What kind of negligence is this, and what opportunities are we missing?” Lindner added.

US Plans Bitcoin Reserve, While Germany Misses Billions

The incoming Trump administration is expected to introduce crypto-friendly policies. One of the key proposals is the creation of a national Bitcoin reserve, a move that could significantly boost the country’s role in the global crypto market.

Lindner highlighted these developments, stressing that the US is positioning itself to lead in the crypto world while Germany is missing a key opportunity.

Meanwhile, Germany made headlines in July for selling nearly 50,000 Bitcoins seized by the public prosecutor’s office in Saxony, a federal state in Germany. At the time of the sale, the price of Bitcoin was around $53,000 per coin – much lower than the current price of over $107,000 – meaning Saxony lost around $2.7 billion.

X Users Send Mixed Reactions

Lindner’s speech has sparked various reactions on X (formerly Twitter).

While some applauded that Bitcoin is being discussed in the Bundestag, others criticized Lindner for not pushing for crypto policies during his time as Finance Minister.

“Well, it seems rather hypocritical. Why now and not in the last 3 years?” one user commented. “But don’t worry, Bitcoin doesn’t need a single politician. And it will be a pleasure to watch when you realize that”.

The other user added, “This is ridiculous. The Finance Minister had years to take advantage of Bitcoin’s opportunities. Now, to complain about it is more than silly.”

Political Crisis in Germany

Christian Lindner was the Finance Minister from December 2021 to November 2024. German Chancellor Olaf Scholz dismissed the Finance Minister, saying it “was necessary to prevent harm to our country.”

The firing came after days of political negotiation between the key members of Germany’s ruling “traffic light” coalition government – Scholz of the Social Democratic Party, Lindner of the Free Democratic Party, and Robert Habeck of the Green Party.

On Dec. 16, Olaf Scholz lost a vote of confidence in the German parliament. In the Bundestag, 394 members voted no, 207 voted yes, and 116 abstained.

Following the collapse of Olaf Scholz’s coalition, new elections will be held on Feb. 23, seven months earlier than planned.

FDP Pushes for Bitcoin Reserves at the ECB and Bundesbank

In his X post from Dec. 13, Lindner’s FDP colleague, Frank Schäffler, called for the European Central Bank (ECB) and the Bundesbank to hold Bitcoin as part of their official reserves, alongside traditional assets like gold.

Overall, Germany’s liberal FDP, one of three parties in the governing coalition Scholz led since December 2021, sees cryptocurrencies as a key driver of innovation in capital markets and fintech over the coming 10 years and champions a proactive, innovation-friendly approach to blockchain and digital assets.

The party also supports developing and establishing a digital euro, which is essential for maintaining the European Union’s competitiveness in the digital age. The FDP wrote in its program for the 2024 European elections:

“Cash is freedom. That is why we are committed to the unrestricted preservation of cash as a means of payment in the European Union and reject uniform cash ceilings. We constructively support the introduction of a digital euro as a supplement to the existing cash.”

At the same time, the FDP wants citizens’ privacy to be fully protected. “There must be no compulsion to use the digital euro and no additional risks for the financial system,” said the party, adding that they want to make the European common market “attractive for cryptocurrencies and positively support their development.”