German MP supports Bitcoin as legal tender in the digital euro

In Germany's financial sector, Bundestag member Joanna Kotar recently announced her support for recognizing Bitcoin as legal tender.

This marks a potential change in the country's supply of digital currency and is in stark contrast to the European Central Bank's (ECB) current digital euro central bank digital currency (CBDC).

Could Germany Be Next to Accepting Bitcoin as Legal Tender?

Kotar's advocacy of Bitcoin stems from his desire to bring the startup cryptocurrency into the German financial mainstream. In this capacity, she is leading a “preliminary investigation” to establish a legal framework that officially recognizes Bitcoin.

Her approach is not only to embrace digital currency, but also to create a balanced regulatory environment. Kotar said.

“This includes ensuring legal security for companies and citizens.”

She also addressed challenges such as money laundering and tax evasion, often associated with the use of Bitcoin.

Read more: How to prepare for a Bitcoin ETF: A step-by-step approach

To expand the issue, Kotar launched the “Bitcoin in the Bundestag” program intended to educate her fellow parliamentarians about the myriad benefits of Bitcoin. This initiative emphasizes the importance of privacy protection, strong security standards and a regulatory framework that avoids excessive restrictions.

Unlike her contemporaries, who often focus on the broader crypto spectrum, Kotar's efforts are Bitcoin-centric. She believes in Bitcoin's unique technological features and its importance to society, asserting,

“My only motivation is Bitcoin.”

Pushing the digital euro

Kotar's position also includes clear opposition to the digital euro CBCC. She argues that Bitcoin's decentralized nature makes it a more suitable digital asset for Germany, promoting financial freedom and privacy.

This view is at odds with the ECB's ongoing project to create a digital euro. The ECB envisions the digital euro as a universally accessible digital currency that offers high levels of privacy and fast payment settlement.

The ECB, led by President Christine Lagarde.

“We need to prepare our currency for the future,” Lagarde commented. She also emphasized the ECB's vision of a digital euro that meets the highest privacy standards and is free for digital payments.

While Kotar supports the adoption of Bitcoin, the ECB continues to work closely with European institutions to ensure that it is in line with people's needs and preferences. This growth reflects the widespread adoption of CBDC around the world. Countries such as Ireland, Spain, France and Italy are actively exploring digital euro prototypes.

Kotar's push for Bitcoin as legal tender in Germany puts him at the forerunner in the adoption of Bitcoin at the governmental level. This move has the potential to influence other countries to reconsider their stance on Bitcoin. This is especially true considering Germany's economic influence in Europe and globally.