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The former German finance minister has suggested that his country should consider creating a bitcoin reserve for its government. Despite ongoing debates about the possibility of central banks using cryptocurrencies like Bitcoin (BTC) as reserves, Germany’s former finance minister has thrown his weight behind the idea.
As we previously reported, the debate about using cryptocurrencies as reserves started when US Senator Cynthia Lummis proposed a bill that would enable the Treasury Department to purchase up to 5% of the world’s total outstanding supply of Bitcoin. Russia is also considering the possibility of creating a bitcoin reserve, citing the cryptocurrency’s independence from international sanctions and its potential to protect against inflation risks associated with traditional currencies like the dollar, euro or yuan.
However, Japan has taken a different stance on this issue. In a previous report, we noted that Japanese Prime Minister rejected a proposal to convert a portion of the country’s foreign exchange reserves into cryptocurrencies, including Bitcoin. The government justified its decision by stating that digital currencies do not fit within Japan’s monetary policy framework due to their excessive volatility and inability to be integrated with existing financial systems.
Despite concerns over the volatility of Bitcoin, which could hinder its adoption as a reserve asset, the former German finance minister has downplayed these fears. He argued that precious metals, such as gold, are also volatile but are still considered acceptable assets for countries to hold in their reserves.
This suggests that governments may be more open than previously thought to considering digital currencies like Bitcoin as a potential addition to their foreign exchange reserves. The debate is ongoing and will likely continue to gain traction in the coming years as more governments weigh the pros and cons of using cryptocurrencies as part of their monetary policy.
Title: A volt német pénzügyminiszter bitcoin-tartalékot javasolt országa számára
Source: www.bitcoinbazis.hu
