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Germany’s Political Shift: AfD Proposes Bitcoin as National Reserve Asset

Germany’s Political Shift: AfD Proposes Bitcoin as National Reserve Asset

Published:
2025-11-05 22:06:43
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In a groundbreaking political move that could reshape Germany's financial landscape, the Alternative for Germany (AfD) party has formally proposed recognizing Bitcoin as a strategic national reserve asset. Submitted to the Bundestag on October 24, 2025, this landmark proposal seeks to distinguish Bitcoin from other cryptocurrencies and exempt it from the European Union's Markets in Crypto-Assets (MiCA) regulations. The timing of this proposal is particularly significant, coming just months after Germany's constitutional court ruling in June 2025 that invalidated the government's reallocation of €60 billion in unused COVID-19 relief funds. This financial shortfall has created an urgent need for innovative reserve strategies, making Bitcoin's potential inclusion as a reserve asset both timely and strategically compelling. The AfD's motion emphasizes Bitcoin's unique properties - including its decentralized nature, fixed supply cap of 21 million coins, and robust security features - as justification for special treatment separate from other digital assets. This proposal represents a major political endorsement of Bitcoin's store-of-value characteristics and could potentially influence other nations reconsidering their reserve asset compositions. If adopted, Germany would join the growing list of sovereign nations integrating Bitcoin into their national treasury strategies, marking a significant milestone in cryptocurrency's journey toward mainstream financial acceptance. The debate surrounding this proposal is expected to intensify in the coming months as Germany navigates both its fiscal challenges and the evolving landscape of digital asset regulation within the European Union framework.

Germany’s Opposition Party Advocates for Bitcoin as National Reserve Asset

Germany's Alternative for Germany (AfD) party has formally proposed recognizing bitcoin as a strategic reserve asset, distinguishing it from other cryptocurrencies. The motion, submitted to the Bundestag on October 24, 2025, argues that Bitcoin's unique properties warrant exemption from the European Union's Markets in Crypto-Assets (MiCA) regulations.

The proposal carries significant financial implications. In July 2024, the German government sold 50,000 Bitcoin for approximately $3 billion—a decision that now represents a $3.5 billion opportunity cost as those coins currently value over $6.5 billion. The AfD suggests Germany acquire 2% of Bitcoin's total supply, mirroring France's recent proposal to accumulate 420,000 BTC over seven to eight years.

Beyond reserve status, the AfD seeks to preserve Germany's favorable tax treatment of Bitcoin, including the 12-month holding period for tax-free gains and exemption from value-added tax. The party warns that overregulation threatens Germany's financial innovation and digital sovereignty.

Bitcoin Giant Strategy Records Q3 Profits of $2.8 Billion Despite Market Slowdown

Strategy (MSTR), the leading Bitcoin treasury firm, reported $2.8 billion in Q3 profits despite Bitcoin's 6% price drop during the quarter. The company's aggressive BTC accumulation strategy remained undeterred, including a $43 million treasury purchase—its largest in a month. Shares ROSE 3% after hours, though they remain well below Wall Street's $551.53 target.

Co-founder Michael Saylor maintains bullish sentiment even as MSTR stock has declined over three months. Bitcoin's Q3 performance paled against its 30% surge in Q2, yet the firm's software business delivered $128 million in revenue. The Virginia-based company continues doubling down on its crypto pivot since 2020, which initially propelled shares 1,400% higher.

Bitcoin (BTC) Holds Steady Amid Federal Reserve Rate Cut and German Policy Shifts

Bitcoin stabilized at $108,850 following the Federal Reserve's decision to cut interest rates from 4.25% to 4.00%, introducing short-term market volatility. Traders are closely watching the $108,900 support level as a key indicator of BTC's near-term trajectory.

In Germany, the Alternative for Germany (AfD) party has proposed classifying Bitcoin as a strategic national asset, separate from other cryptocurrencies under the EU's MiCA framework. The motion advocates for VAT exemptions, self-custody protections, and maintaining the 12-month tax exemption on BTC profits—a policy favoring long-term holders.

The AfD's proposal mirrors discussions in France, suggesting Bitcoin be added to national reserves akin to gold. This signals growing political acceptance of crypto as Europe seeks to foster a more investment-friendly blockchain ecosystem.

Germany Debates Bitcoin's Role as Strategic Asset Amid MiCA Challenges

German lawmakers are intensifying scrutiny of Bitcoin's regulatory treatment under the EU's Markets in Crypto-Assets (MiCA) framework. The Alternative for Germany (AfD) party has proposed classifying BTC as a strategic reserve asset rather than a speculative instrument, positioning it as a tool for economic sovereignty.

The motion seeks exemption from MiCA regulations, arguing Bitcoin's decentralized nature makes it fundamentally distinct from other digital assets. Proponents compare BTC to digital gold, warning excessive regulation could drive innovation abroad and weaken Germany's competitive edge in the blockchain sector.

Tax policy emerges as a key battleground, with advocates pushing for favorable treatment to retain capital and talent. The debate signals growing institutional recognition of Bitcoin's unique properties as nations grapple with crypto frameworks.

Is This the Worst Crypto Bull Market Ever?

The crypto market in 2025 has been a grueling slog, marked by alternating waves of optimism and despair. Bitcoin remains the sole bright spot, while altcoins have cratered, many down 90% or more. "Extremely difficult cycle," laments altcoin trader Crypto Birb. "Hard to believe it's still a bull market at all."

Scott Melker, the Wolf of All Streets, captures the zeitgeist: "If you didn’t just buy bitcoin and hold, you have probably lost money." Even whales are struggling, with once-reliable treasury plays now underwater. The absence of an alt season has left traders grasping for lifelines in a market that rewards only the most patient BTC holders.

The divergence between Bitcoin and the broader crypto market has never been starker. Mold grows faster than altcoin charts, as one observer grimly notes. This bull run, if it can be called that, has become a test of endurance rather than exuberance.

Bitcoin ETFs See $470 Million Outflow Amid Market Adjustments

U.S. Bitcoin ETFs recorded $470.7 million in net outflows, snapping a four-day inflow streak as investors reacted to shifting market conditions and Federal Reserve signals. The reversal follows $462.7 million in prior inflows, with Fidelity's FBTC and ARK 21Shares' ARKB leading the retreat.

Market sentiment turned as traders took profits ahead of Fed Chair Jerome Powell's remarks. Despite earlier Optimism about potential rate cuts, Bitcoin failed to sustain upward momentum. Powell's tempered outlook on further monetary easing prompted portfolio rebalancing across crypto investment vehicles.

The 12 spot Bitcoin ETFs collectively reflected this strategic shift on October 29, according to SoSovalue data. Institutional flows continue demonstrating Bitcoin's sensitivity to traditional finance indicators, with ETF movements serving as a barometer for broader crypto market risk appetite.

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