Germany and Bitcoin have a complicated relationship. Honestly, it’s a bit of a rollercoaster.
Not long ago, the German government was the "whale" everyone feared. In mid-2024, the Federal Criminal Police Office (BKA) offloaded nearly 50,000 BTC—seized from the piracy site Movie2k.to—into a falling market. They netted about $2.8 billion. Fast forward to today, and that same stack would be worth more than double.
Critics call it the "billion-dollar blunder." But while the government's wallets hit zero, the legislative halls of the Bundestag started heating up. A new Germany Bitcoin reserve proposal has turned the conversation from "selling off" to "stacking up."
The Pivot Toward a Strategic Reserve
The atmosphere in Berlin has shifted. It’s no longer just about police seizures.
In late 2025, a formal motion was introduced in the Bundestag to establish a national Bitcoin reserve. This isn't just some fringe internet idea anymore. The proposal, largely championed by lawmakers like Joana Cotar, suggests that Germany should treat Bitcoin as "state-free money."
They want to stop treating it like a seized car at an auction and start treating it like gold.
Basically, the proposal argues that Germany needs a "Strategic Bitcoin Reserve" to hedge against inflation and the potential instability of the traditional fiat system. It’s a bold move. If passed, Germany would become the first major European power to officially hold Bitcoin as a sovereign reserve asset.
The proposal specifically suggests:
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- Classifying Bitcoin as a "strategic asset" distinct from other cryptocurrencies.
- Exempting Bitcoin from certain MiCA (Markets in Crypto-Assets) regulations that might stifle local innovation.
- Protecting the right to self-custody for private citizens.
- Maintaining the tax-free status for Bitcoin held longer than one year.
Why the Sudden FOMO?
You’ve probably noticed the global trend.
The United States has been flirting with the idea of a strategic reserve too. When major world powers start talking about buying up a fixed-supply asset, other nations get nervous. Joana Cotar has been vocal about this "FOMO" (Fear Of Missing Out). She’s warned that if the U.S. moves first, European nations will be left scrambling to buy at much higher prices.
It's a game of sovereign game theory.
If one country puts 2% of the supply on its balance sheet, the price likely rockets. If you’re the last country to join the party, you’re essentially subsidizing the early adopters. The Germany Bitcoin reserve proposal is an attempt to make sure Germany isn't the one left holding the bag—or rather, the one with an empty bag.
The Pushback: It’s Not All Smooth Sailing
Not everyone is buying the "digital gold" narrative.
Mainstream German politics is notoriously conservative when it comes to the national budget. The "Schwarze Null" (black zero) policy—a commitment to a balanced budget—makes some politicians wary of volatile assets.
Critics argue that:
- Bitcoin is too volatile for a national treasury.
- It sends the "wrong message" about the stability of the Euro.
- The environmental impact of mining (though the proposal actually suggests using Bitcoin to stabilize the power grid).
There’s also the Digital Euro to consider. The European Central Bank (ECB) is pushing hard for its own digital currency. For many in the Bundestag, Bitcoin represents the ultimate antithesis to a state-controlled digital currency. This makes the debate as much about "financial freedom" as it is about "investment returns."
What Most People Get Wrong
People think this proposal is just about "making money." It’s actually more about sovereignty.
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If you look at the fine print of the recent motions, there is a heavy emphasis on "Outside Money." This is the idea that Bitcoin exists outside the control of any single government. In a world where financial sanctions and currency devaluations are becoming common geopolitical tools, having an asset that nobody can freeze or print is becoming weirdly attractive to state actors.
Even German banks are moving. DZ Bank, the second-largest in the country, recently received MiCAR approval to roll out retail crypto trading. The infrastructure is being built while the politicians argue.
Actionable Insights for 2026
If you're following the Germany Bitcoin reserve proposal, here is what you should actually be watching:
- Watch the "Bitcoin in the Bundestag" Initiative: Joana Cotar’s group is the primary pulse for this movement. Their success in educating other MPs is the lead indicator for any law changes.
- Monitor Seizure Policy: Check if the BKA changes their "sell immediately" mandate. If the German government starts holding onto new seizures instead of liquidating them, the reserve has effectively started by default.
- Track Corporate Adoption: The move by DZ Bank to offer "meinKrypto" to millions of retail customers suggests that the German public's appetite is growing, which puts pressure on politicians to catch up.
- The US Factor: Watch the US Treasury. If the US officially passes a Bitcoin reserve bill, expect the German proposal to move from "discussion" to "emergency session" almost overnight.
The era of governments ignoring Bitcoin is over. Whether Germany becomes a leader or a laggard depends entirely on how the Bundestag votes on these strategic reserve motions in the coming months.
To keep a pulse on this, you can follow the official Bundestag parliamentary archives or monitor the "Bitcoin in the Bundestag" social feeds for live updates on session debates.