Bitcoin Should Be Added to Reserves, According to Former German FM

Christian Lindner, the head of Germany's Free Democrats (FDP) party, has endorsed the idea of diversifying Germany's reserves with the help of Bitcoin, according to a recent report by Handelsblatt.

The former finance minister also believes that the European Central Bank (ECB) should make a similar proposal.

Lindner has pointed to the fact that the U.S. is considering embracing Bitcoin as a federal reserve asset, which is why he believes that Germany should potentially follow suit. 

The 45-year-old politician does not want Germany to be left behind when it comes to crypto. 

Lindner is convinced that Bitcoin could potentially bolster the resilience of the country's reserves. 

Presently, there are intense debates regarding whether or not the U.S. should adopt Bitcoin as its reserve asset. This comes after Senator Cynthia Lummis announced a bill that would authorize the Treasury to buy 5% of the cryptocurrency's total supply. 

As reported by U.Today, Jeff Park, head of alpha strategies at Bitwise Invest, recently opined that there was just a 10% chance of the U.S. government establishing a Bitcoin reserve in 2024. 

Other countries are not considering whether or not they should potentially follow suit. As reported by U.Today, the Japanese government expressed skepticism about such an idea. 

Despite achieving significant institutional adoption, Bitcoin remains a volatile asset, which might prevent it from becoming a reserve asset in major economies. 

However, Lindner has downplayed these concerns, arguing that precious metals are also volatile.