- Germany’s upcoming parliamentary election is on February 23
- At the moment, CDU/CSU alliance is leading the polls, followed by AfD
- Last year, Germany had several pro-crypto moves
Germany’s upcoming parliamentary election on February 23rd holds significant implications for the nation’s financial world, especially when it comes to cryptocurrency regulation. The leading political parties have outlined diverse financial policies that could shape the future of digital assets like Bitcoin.
As Europe’s largest economy, how Germany approaches crypto after these elections could have a worldwide impact.
The Parties and Their Crypto Stances
Led by Friedrich Merz, the CDU/CSU alliance (a center-right group) is currently leading in the polls. Their financial platform presents broad ideas with limited specifics, leaving their stance on cryptocurrency regulation somewhat ambiguous. Historically, the CDU/CSU has maintained a cautious approach to financial innovation, emphasizing stability and prudent oversight.
Positioned second in the polls, the far-right AfD, under the leadership of Alice Weidel, proposes radical financial reforms. Notably, the party advocates for Germany’s exit from the euro and the deregulation of Bitcoin, aiming to establish a more autonomous monetary policy and foster a crypto-friendly environment.
Related: Germany’s Largest Bank Set to Provide Crypto Custody Solutions
This is also the party in which Elon Musk made a surprise appearance during their election campaign and to whom he gave support.
The Greens, led by Robert Habeck, and the pro-business FDP under Christian Lindner, are trailing in the polls. The latter advocates for lower taxes and reduced regulation, which could extend to a more lenient stance on cryptocurrencies.
All in all, Germany’s election presents a range of potential policies regarding the way cryptocurrency should be handled, and depending on the winners, it’s bound to have some sort of an impact on Bitcoin and cryptocurrencies as a whole.
Germany and Crypto
Germany’s interest in cryptocurrency remains strong and undiminished, even in the current period of political uncertainty.
As of 2024, German banks have increasingly adopted crypto services, signaling a considerable shift in the financial landscape. Institutional investors are seeking secure and regulated avenues to engage with digital assets like Bitcoin and Ethereum.
Related: Germany’s Central Bank Joins Project Guardian to Shape Tokenized Finance
In July 2024, DWS, a Deutsche Bank-owned asset management firm, announced plans to launch the first euro-denominated stablecoin regulated by BaFin in 2025, reflecting Germany’s proactive approach to digital currency integration.
In general, the sale of cryptocurrency is tax-exempt in Germany if the private investor has held the crypto asset for more than one year.
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