Germany Joins France in Pursuit of a Strategic Bitcoin Reserve

Germany’s Alternative für Deutschland party, the country’s second-largest political force, officially introduced a parliamentary motion to establish a strategic Bitcoin Reserve.

The proposal marks a significant development in European cryptocurrency policy and comes just one day after France announced its own ambitious Bitcoin Reserve legislation.

AfD Shares Bitcoin Reserve Rationale

The AfD motion highlights Bitcoin’s potential to serve as a protective measure against inflation and to add diversity beyond traditional reserve assets, such as gold and foreign currency.

Party representatives argue that Germany should not fall behind as other countries and institutions increasingly explore Bitcoin Reserve strategies.

The motion will need examination by the German Finance Ministry regarding technical and legal aspects. Officials must assess secure storage mechanisms, national accounting procedures, and compliance with European Union financial regulations.

The ministry’s review will decide the feasibility of implementing a Bitcoin Reserve within existing legal frameworks.

The AfD’s stance on cryptocurrency includes calls for extensive deregulation of Bitcoin, aimed at making Germany a “crypto haven” with friendly regulations, low taxes, and supportive banking policies.

In February 2025, ahead of parliamentary elections, the party also advocated for Germany to exit the Eurozone and opposed the European Central Bank’s digital euro initiative.

Central Bank Opposition Threatens Bitcoin Reserve Plans

The proposal faces skepticism from Germany’s financial establishment. Joachim Nagel, head of the Bundesbank, has strongly rejected Bitcoin as a reserve asset.

Nagel called Bitcoin unsuitable for central bank reserves, pointing to the lack of liquidity and security concerns. He compared Bitcoin to the 17th-century Dutch Tulip Mania, warning of its speculative nature and volatility.

The Free Democratic Party, another pro-crypto German political party, previously included provisions for integrating Bitcoin and blockchain-based assets into Germany’s financial system in their election manifesto.

The AfD currently holds substantial parliamentary representation as Germany’s second-largest party. This provides more political leverage than France’s Union of the Right and Center Party, which holds only 16 seats in the French National Assembly.

France announced Bitcoin Reserve plans one day earlier

French lawmaker Éric Ciotti introduced legislation on October 28, 2025, proposing France acquire 420,000 BTC, roughly 2% of Bitcoin’s total supply, over seven to eight years.

France’s funding mechanisms include surplus nuclear and hydroelectric energy powering public Bitcoin mining, retained crypto seized during legal proceedings, and daily purchases of approximately €15 million from national savings funds.

The French proposal also includes pro-crypto reforms such as legalizing euro stablecoins and rejecting a digital euro. Germany’s AfD proposal has not yet detailed specific funding mechanisms.

Germany Maintains Progressive Cryptocurrency Framework

Germany was the first country to officially recognize Bitcoin as a legal “unit of account” in 2013.

This early recognition laid the foundation for Germany’s regulatory framework, positioning the country as one of Europe’s more progressive jurisdictions for digital assets.

In 2020, Germany enacted legislation requiring all cryptocurrency exchanges to obtain licenses from the Federal Financial Supervisory Authority.

The law also established rules for crypto custodians, including minimum capital requirements and Anti-Money Laundering compliance obligations. Germany classifies cryptocurrencies as financial instruments or assets rather than legal tender.

Germany and France join a growing list of nations considering or implementing Bitcoin Reserve programs.

The United States established a Strategic Bitcoin Reserve in March 2025 via executive order.

The country consolidated approximately 198,000 BTC obtained through civil and criminal forfeiture. Sixteen U.S. states have introduced state-level Bitcoin Reserve legislation.

The Czech National Bank approved a proposal in January 2025 to study investing reserves in Bitcoin and potentially allocate up to 5% of its €140 billion reserves.

Brazil’s Chamber of Deputies held hearings in August 2025 on establishing a Bitcoin Reserve allowing up to 5% of treasury reserves to be invested.