Liberal Candidate Proposes ECB and Bundesbank Hold Bitcoin Reserves

Christian Lindner, FDP Leader, Follows Donald Trump’s Lead in the U.S., Urges Europe Not to Fall Behind. On risks, he argues that precious metals are also volatile.

The approach taken by elected U.S. President Donald Trump toward cryptocurrencies is now being mirrored in Europe. While Trump previously criticized Bitcoin, the leading cryptocurrency, he now advocates for a favorable policy toward it, with Republican allies pushing for the U.S. Federal Reserve to hold Bitcoin reserves.

Across the Atlantic, politicians like Christian Lindner, former German finance minister and leader of the liberal FDP party, are following suit.

During his time at the finance ministry, Lindner’s staunch opposition to increased public spending led to ongoing conflicts within Chancellor Olaf Scholz’s coalition government. The alliance between the Social Democrats, Greens, and Liberals collapsed due to these deep disagreements, leading to federal elections in February, where Lindner aims to assert his own position amid polls that suggest his party might struggle to gain parliamentary representation.

European Bitcoin Reserve Proposal

In this context, Lindner proposed that the European Central Bank (ECB) and its main shareholder, the Bundesbank, hold Bitcoin reserves. He justified the idea by pointing to what is happening in the U.S. “The new Trump administration is pursuing an extremely progressive policy on crypto assets like Bitcoin,” Lindner told media outlets. “Washington is even considering whether the U.S. Federal Reserve should include crypto assets in its reserves alongside currencies and gold.”

BTC/USD

Lindner emphasized that both the ECB and Bundesbank are independent in their decisions but argued that Germany and Europe cannot afford to fall behind. “Frankfurt should consider whether crypto assets should be part of central bank reserves,” he said. He also suggested that this could help strengthen the resilience of reserves. “After all, crypto assets now represent a significant portion of global wealth growth,” he argued.

German Bitcoin Reserves Risks

When asked about the risks associated with cryptocurrencies, whose prices are known for extreme fluctuations, Lindner downplayed these dangers: “No one should invest everything in them. However, as a decentralized system where no one has exclusive power, the political risks are calculable. There are also fluctuations in traditional assets like precious metals.”

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.