As soon as El Salvador adopted Bitcoin as legal tender a few years back, it was clear that the world was heading for a change. Sure, it was a move by a small country, but one that has repercussions years later. The so-called social experiment has worked like a charm for the island country, and larger countries have been put on notice.
The latest Bitcoin initiative comes from the German Bundestag. One of its members, Joana Cotar, has just asked the federal parliament to recognize Bitcoin as legal tender. Of course, it won’t happen anytime soon as there’s a long road to walk. But, the fact that a member of the parliament has declared for support means that more and more countries are looking to join the fray.
A Monumental Moment
Bitcoin is not legal tender anywhere in Europe, but Germany was always open to the idea. There are some countries and regions where it’s recognized, but it’s not legal tender like in El Salvador. That might change in the future, especially if it gets support from members of various parliaments. The Bundestag’s Joana Cotar has just asked the federal parliament to recognize the benefits of Bitcoin and develop a framework to make it legal tender in the future.
Cotar announced her ambitions to bring Bitcoin to the mainstream of German finance. She announced a preliminary examination to craft a legal framework that’ll formally recognize Bitcoin and its great benefits. Of course, Cotar put an emphasis on the importance of establishing a regulatory environment for it. It needs to ensure the legal aspects for German citizens and companies and prevent tax evasion, money laundering, and other criminal activities. She noted Bitcoin’s innovative and liberating aspects without the shackles imposed by fiat money.
Of course, Joana Cotar is fully aware that things won’t happen overnight. To advance her cause, she has launched an initiative named ‘Bitcoin in the Bundestag’. Her effort should enlighten others in the federal parliament about the various positive benefits of Bitcoin. She aims to inform them about the freedom aspects of Bitcoin and cryptocurrencies and the robust security standards no other payment method brings.
Against the Digital Euro
Let’s not make a mistake – Joana Cotar is not pro digital finance – she’s pro-Bitcoin. In the same interview where she announced her intentions, she also said that ‘Nobody needs the digital Euro’, while wearing a Bitcoin t-shirt. This concept has been floated by the European Union for a while, but it has met strong resistance from many European parliament members.
Before this happens at all, a lot of things must happen. A future where Bitcoin is legal tender in Germany means developing a whole new finance framework and accepting crypto taxes and fees. Bitcoin mining should be somehow regulated too, as it’s too taxing on the power grid.
But, the push toward Bitcoin legalization shows that there might be potential shifts in Europe’s monetary ecosystem. Germany might be the first step, and if that happens, you can bet that many others will follow its example.