Germany's Alternative for Germany (AfD) party submitted a motion to the Bundestag on October 24, 2025, advocating for Bitcoin's recognition as a distinct digital asset, separate from other cryptocurrencies. The party also expressed opposition to applying Europe's Markets in Crypto-Assets (MiCA) regulation to Bitcoin service providers, arguing that such extensive regulation could compromise Germany's financial freedom and digital sovereignty.
The motion specifically calls for the preservation of the current 12-month holding period for tax-exempt gains. Furthermore, it demands the protection of individual self-custody rights and the continuation of Bitcoin's exemption from value-added tax.
A key request within the AfD motion is for the German government to explore the possibility of holding Bitcoin within national currency reserves. The party noted that while the current tax treatment of Bitcoin is considered positive, legal uncertainties may discourage long-term private investment. Germany previously held nearly 50,000 BTC, seized from criminal operations, which were sold in 2024 when prices were around $54,000 per coin. Those holdings would now be valued at approximately $6.5 billion, given current prices near $113,000.
European Nations Explore Digital Asset Reserves
This initiative from Germany follows a similar legislative proposal in France. On October 22, 2025, French lawmaker Éric Ciotti introduced legislation targeting the accumulation of 420,000 BTC between 2025 and 2032, employing a dollar-cost averaging strategy to mitigate volatility risk. This move aligns with a broader international trend of governments considering digital assets for their reserves.
Earlier in 2025, 15 US states advanced plans for Bitcoin reserves, with Pennsylvania leading the way. Proposals from Texas and Oklahoma also emerged, suggesting allocations of up to 10% of public funds for Bitcoin purchases. These developments underscore a growing interest in digital asset reserves across different continents.
The AfD's parliamentary motion signifies a potential shift in Germany's stance. The 2024 sale of seized Bitcoin generated about $2.88 billion, but it represented a missed opportunity for potential gains exceeding $3.5 billion, as Bitcoin prices have since doubled. The AfD contends that this highlights the strategic advantage of long-term holdings over immediate liquidation of seized assets.
Debate Surrounds MiCA Framework Implementation
The MiCA regulation officially took effect on December 30, 2024, establishing comprehensive rules for crypto-asset service providers throughout the European Union's 27 member states. Data from CoinLaw indicates that the European crypto market reached €1.8 trillion by the end of 2025, marking a 15% year-over-year increase under the MiCA framework. This period saw a 47% rise in registered Virtual Asset Service Providers in the EU, attributed to clearer regulatory guidelines. Institutional investors demonstrated increased confidence, with 32% reporting an increase in crypto holdings following the activation of MiCA's investor protection measures. Stablecoin transactions within the EU also grew by 28% under the new rules.
Despite these positive indicators, the AfD motion specifically questions MiCA's applicability to Bitcoin. The party argues that Bitcoin's inherent decentralization and fixed supply differentiate it from other digital assets. Germany's central bank, the Bundesbank, has previously voiced reservations about Bitcoin as a reserve asset. In February 2025, Bundesbank President Joachim Nagel drew parallels between Bitcoin and historical speculative bubbles.
Blockchain analytics firm Chainalysis has ranked Germany third in Europe for total crypto value received. The firm partially attributes this performance to MiCA's role in providing regulatory clarity for crypto-native firms. The divergent viewpoints reflect an ongoing discussion regarding the most effective regulatory approaches for digital assets.
Should Germany's motion be approved, it would join a select group of nations that include Bitcoin in their official reserves, such as El Salvador, which adopted Bitcoin as legal tender in 2021 and maintains strategic holdings. The outcome of Germany's parliamentary process could influence policy decisions in other European countries considering similar measures. The motion is currently slated for committee review before any potential consideration by the Bundestag floor.