Christian Lindner, the former German Finance Minister and current leader of the Free Democratic Party (FDP), has called for the European Central Bank and the Bundesbank to consider adding cryptocurrencies like Bitcoin (CRYPTO: BTC) to their reserves.

What Happened: "The new Trump administration is pursuing an extremely progressive policy on crypto assets like Bitcoin," Lindner said, according to a report by Handelsblatt on Monday.

Lindner emphasized that while the ECB and Bundesbank are independent in their decision-making, "Germany and Europe must not allow themselves to fall behind again."

He suggested that Frankfurt, where the ECB and Bundesbank are headquartered, should examine whether crypto assets should become part of central bank reserves, potentially strengthening their resilience.

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Why It Matters: This proposal follows Republican Senator Cynthia Lummis' proposal of a "Strategic Bitcoin Reserve," which involves the government purchasing 200,000 Bitcoins annually for five years.

President-elect Donald Trump is reportedly considering an executive order to establish such a reserve.

The idea of central banks holding cryptocurrencies is not without controversy. Critics point to the volatility of crypto assets and potential risks to financial stability.

Lindner argues that as a decentralized system, political risks associated with cryptocurrencies are calculable, comparing them to fluctuations in traditional assets like precious metals.

The push for cryptocurrency reserves represents a growing recognition of digital assets' role in the global financial system, Lindner says, noting that "crypto assets now represent a significant portion of global wealth growth."

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