Could Bitcoin be legal tender in Europe? A German member of parliament thinks so

Joanna Kotar began her political career in 2013 after joining the newly founded Alternative for Germany (AfD) political party. Her introduction to Bitcoin was the same year when her brother told her about founding cryptocurrency.

In the year In the 2017 German federal election, Kotar became a member of the Bundestag – Germany's federal parliament – ​​as the AfD's federal executive. In the year November 21, 2022 Kothar left the party after 10 years for several reasons.

As an independent MP, Kothar is free to fight for what she believes in without the constraints of a political party.

Kotar delved into Bitcoin (BTC) while studying principles at the Austrian School of Economics and realized she had an opportunity to support Bitcoin in the political arena.

Kotar By the end of 2023, the Bundestag has introduced a bill in Germany that would require the federal government to investigate making bitcoin more accessible. The bill also provides for German citizens to pay taxes with BTC and to study how Bitcoin mining can stabilize the energy grid and monetize renewable energy.

But the most ambitious line item is making Bitcoin legal tender in Germany.

For this to happen, members of the Bundestag must be convinced of Bitcoin's positive attributes. In Kotar's experience, MPs lack basic knowledge of how crypto works and tend to only hear about the dark side of Bitcoin.

Kotar's next awareness campaign, the “Bitcoin im Bundestag” initiative, will host a launch event on February 22, 2024. The event is open to regular citizens, but priority is given to members of the German parliament.

El Salvador was the first country to adopt bitcoin as legal tender in September 2021, with mixed results. Can crypto adoption on a national scale work in Europe? According to Kottar, there is much more at stake as, in her opinion, “changing society for the better.”

CT: Why did you enter politics?

JC: The reason I entered politics was to fight for freedom. I am from Romania. I know what it means to not have political freedom or personal freedom. The reason I entered politics was to prevent this in Germany.

CT: Why did you include Bitcoin in your political narrative?

JC: I had a wow moment when I added Bitcoin to political work; I realized how it solved many problems. Bitcoin is the currency of freedom that we need to solve many problems.

I tried to push it in my party, Alternative für Deutschland. You can find all the steps I tried on my website, but failed.

I was in charge of digitalisation, but the usual reaction was fear and distrust of computers. I had no chance to push my ideas and finally left the party in 2022.

At that moment I realized I was free. I am not responsible for what my party says. I can do whatever I want, so let's make the most of my remaining two and a half years in the German parliament.

CT: Politicians can often use Bitcoin as a talking point in their campaigns. and you?

JC: As far as I can see, I cannot be elected in the 2025 German elections. No positive effect for me. I can't get elected, so what do I get from voters?

If everything continues as it is, I will be out of politics by 2025. Let's say there is a party that has conservative values ​​and is extremely liberal when it comes to economics, including Bitcoin, and I could go on.

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I don't see any party focusing on independence. This will be for me. Bitcoin is something that is dear to my heart. I have never seen anyone come back after going down the rabbit hole about Bitcoin. Once you understand how many benefits Bitcoin has, you'll know it's the right thing to do.

CT: You said you want Bitcoin to be legal tender in Germany. Can BTC be recognized as legal tender at the municipal, state or federal level in Germany?

JC: I think it is possible to have Bitcoin as legal tender in Germany.

“No one needs the digital euro,” says a German MP wearing a #Bitcoin t-shirt. pic.twitter.com/Rw4qdeKE0h

— Bitcoin Archive (@BTC_Archive) November 11, 2023

We can start small in some cities like Lugano, Switzerland. We can start in Berlin or Munich and scale up from there. After that, we can implement this throughout Germany.

CT: In your draft law, Germany should establish a Bitcoin reserve like it has with gold. How does this work? What percentage would you assign?

JC: Yes, in terms of percentage, we need to talk about the exact allocation that we are willing to invest in Bitcoin.

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Gold is hard to transport. We do not have it in the country; It is available in New York and other countries. Buying Bitcoin as a reserve is a smart investment and a sign that we believe in Bitcoin.

CT: BTC is a big deal as legal tender in Germany or Europe. Are there more concrete or achievable laws that could create a positive perception of Bitcoin?

Jesse: Yes. We may have to start small; Converting to Bitcoin cannot happen overnight.

My first step is to legislate to pay taxes in Bitcoin. After that, I was looking at applying Bitcoin mining to the electric grid.

CT: When you mention implementing Bitcoin mining, do you mean regulating Bitcoin mining? Can you suggest a specific course of action?

JC: Right now they are [the German government] They are aiming to make life as difficult as possible for Bitcoin miners. I want to pass a law that makes Bitcoin mining in Germany as easy as possible so you can open your business in the country.

I am not a supporter of subsidies as I believe in the free market. We can attract them with a different tax policy or provide them with a simple bureaucratic system.

We can use Bitcoin mining to our advantage. Few people know that Bitcoin is helping to stabilize the right crazy power approach in Germany. We rely entirely on wind and solar and cannot use nuclear power. The situation has created a power grid that cannot always provide power.

CT: Who is against making Bitcoin legal tender in Germany?

JC: I think conservatives are against it because they fear losing power. It's the parties that always want to control the people, which is crazy to me. I think the left political parties will be interested in following the people, but in Germany they are conservative.

As for the Green Party, they reject it this time because it has high energy costs. They think it's bad for our environment, but if we tell them it's the opposite, they might change their minds.

I will tell them how Bitcoin mining stabilizes the network, which is actually a risk in Germany. I think they will change their minds because this is their main obstacle. Also, if you can inform the left about how Bitcoin can help in real world situations for human rights, I think they might change their minds. But we need someone to explain all these things to the MPs.

CT: Hypothetically, if Bitcoin becomes legal throughout the EU or Germany, how will society change?

JC: Bitcoin is a form of freedom money. When we implement Bitcoin, the government will no longer have the power it has now. Society was once again in control of its own money. It will not be easy for the government to take it.

In addition, I think that being one of the first countries to make Bitcoin legal tender will attract more people to Germany with new ideas, which will create an entrepreneurial boom.

CT: If currency printing is impossible, no stimulus packages or short-term economic solutions are possible. How will the political environment change?

JC: I think politicians need to think things through. Few politicians think about how to spend our money because you can print it. If you run out of money, you can print again. No Liability.

It is not possible to test actions, and if the money runs out, print new money.

I have always said that the euro crisis, when the central bank was printing euros to help Greece, was not going to happen. If we don't get all the stimulus packages, I don't think we will still have the euro.

Politicians can't influence the economy like central bankers do with inflation, which in my opinion will free the people from many problems.

If we have Bitcoin as legal tender, they should think about how they spend the money and ask themselves; For example, they need to think whether we invest in war or invest in our economy.

We really need politicians who know what they are doing. Unfortunately, that's something you don't have right now.

CT: What will happen to the national debt?

JC: Tough questions. I'm not entirely sure, to be honest. We have to repay our debt, but I don't know if any country will be able to repay its debt in the future.

CT: If Bitcoin becomes legal tender tomorrow, do you think the Bitcoin protocol is ready?

JC: That's a good question. Our example is El Salvador, but Germany is much bigger.

I'm not in the Bitcoin business technically, so I can't give a proper answer. I hope politicians in other small countries are prepared to advocate for Bitcoin to become legal tender.

Lightning Network is easy to use and aims to solve this problem. I guess that won't be a problem.

CT: Like in El Salvador, do you want to recognize Bitcoin as legal tender in relation to the Euro?

JC: I think it's a good idea to have two parallel currencies. I don't think it's a good idea to replace the euro from the start.

Living with two official currencies for two years allows you to evaluate whether it is possible to switch to Bitcoin only and whether it is better to run both at the same time.

CT: How did the idea for your educational campaign “Bitcoin im Bundestag” come about? What is the purpose?

JC: Fortunately, my colleagues and staff here knew about cryptocurrencies. In the beginning, there were all different cryptocurrencies; Now they are all Bitcoin only.

The influence of the staff on the MPs is significant. It is important to speak directly to MPs but also the team behind them.

My colleagues explained everything you need to know about Bitcoin. Then we sat together and planned how to promote this in the German parliament.

We started this initiative mainly to educate my MPs about what Bitcoin is and other related issues such as its role in energy, how it can help the unbanked, etc.

At Bitcoin im Bundestag experts are invited to talk about the Bitcoin network and news trends. If I can't run again and continue this campaign, I'd be happy if MPs at least knew better. Ideally, an official Bitcoin group would emerge in the German parliament.

In the year We started with a website in 2023, but we don't have an end date. The official event will begin on February 22, 2024. If we succeed, we will no longer need this initiative because my fellow MPs will have enough knowledge about the nature of Bitcoin; Mission accomplished.

CT: Was it difficult to recruit Bitcoiners for the campaign because politics were involved?

Jesse: I know that many Bitcoiners are not interested in politics. Their approach is to leave us alone and not control us. Although I have met a lot of Bitcoiners in the last month, I have to say that these are the people we need in politics. These people get it and know why freedom is important. I understand that politics is a dirty business but we need people with fresh and good ideas.

Currently, we have many Bitcoiners who agree to come to Bitcoin im Bundestag. They did not know how to respond to some politicians; They were concerned about which ones might harm them or which might be positive for their cause. I replied that it doesn't matter if it's to the left, to the right, up or down. The main thing is Bitcoin. Let's focus on that attitude and try to educate people.

CT: What does the average German MP know about Bitcoin?

JC: I have spoken to some MPs who have literally told me that they have no idea what Bitcoin is; That's the problem. You don't know how to use Bitcoin positively. That's why we have to start; We must teach.

Many continue the narrative that Bitcoin is only used for money laundering and terrorism. I think it will be a big success if we discuss Bitcoin in terms of knowledge.

With a few MPs, a possible ban or restrictions on Bitcoin could be stopped or at least discussed.

CT: Do you have plans for 2025? Do you want to join a party to continue your political career?

JC: I'm not going to another party. I will join another party just to kiss them. I will not join a party just to get re-elected. Some liberal, conservative parties and new parties formed in the last two months or last year have asked me to join.

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I have been in a political party for about 10 years. Towards the end, it was hard to wake up in the morning and ask myself, how can I prevent being a member of AfD? One day, I couldn't take it anymore and left.

When the word is over, then I go back to normal. I have never been a politician; I was not a politician before I joined. I had my own business and was a project manager so I didn't need politics.

It's a crazy business; It's a dirty business. I have been in politics for 12 years, if this is the end. But that doesn't mean I'll stop; I can lobby for Bitcoin in politics.

This interview has been edited for clarity and brevity.