Petition calls on the Deutsche Bundesbank to build up Bitcoin reserves
Not only private investors, but more and more institutional investors see Bitcoin as a store of value with a future. Wouldn’t it be the next logical step for central banks to jump on this bandwagon as well? At least this is the opinion of Dr. Sven Hildebrandt, who started a petition to establish Bitcoin as a strategic asset at the Deutsche Bundesbank.
It is no secret that central banks are generally not the biggest fans of Bitcoin. Only recently, ECB boss Christine Lagarde rejected the cryptocurrency. “It is very unlikely – I would say that it is out of the question,” Lagarde replied last Wednesday during a conference call with the business magazine The Economist when asked whether the ECB could envisage holding Bitcoin as a reserve currency.
But what applies to the European Central Bank does not necessarily have to apply to the national central banks, thought Dr. Sven Hildebrandt, who himself works in the crypto sector with his consulting company, DLC Distributed Ledger Consulting GmbH. For this reason he decided to start a petition to motivate the Deutsche Bundesbank to include Bitcoin as a reserve asset.
Even if this endeavor is probably doomed to failure and the Deutsche Bundesbank will not allow itself to be persuaded by a petition to accumulate Bitcoin, it is still an important signal, as Hildebrandt expresses:
” Constant dripping wears away the stone – it is up to the community to point out what is right over and over again. This ranges from discussions regarding the electricity consumption of Bitcoin to money laundering topics to simple false statements on technical topics, as you see them again and again. We have to stick together and the more people participate, the better.
Fabian Friedrich, initiator of the Blockchance Europe conference, is also on board. It is said of him:
” Of course – and Sven is also aware of this – no petition in the world will induce the Bundesbank to buy Bitcoin. But it is important that the topic is repeatedly brought up in public. The more people vote, the better. So, share, forward, forward!
Why not just physical gold?
The enormous gold purchases by the central banks in recent years show that the idea is not completely absurd. Many billions of US dollars have been invested in the purchase of gold by the monetary authorities. The Deutsche Bundesbank holds 3,362 tons of gold, which corresponds to around 200 billion US dollars. Only the USA thinks more of the shiny precious metal with 8,133 tons.
Since Bitcoin is becoming more and more established as Gold 2.0 and has many gold-like properties, it is quite obvious to diversify your holdings with digital gold. Hildebrandt suggests adding 1 to 5 percent Bitcoin to the other reserve assets. Finally, he also recognizes the high volatility of Bitcoin.
Political independence and scarcity as the greatest value proposition
The addition of the reserve asset Bitcoin could, according to Hildebrandt, provide additional stability in troubled times, as he puts it on the petitions homepage:
” One way out of this dilemma [the massive central bank interventions due to the corona pandemic was previously pointed out] offers only an ultra-hard asset, which is above both political influence and the spontaneous expansion of the “amount” of existing units. The crypto value Bitcoin, which is covered by the Banking Act, offers the best properties at this point and should therefore be created by the Bundesbank as a strategic store of value in order to remain solvent even in the event of a crisis.
Anyone who sympathizes with Hildebrandt’s idea can do their part on the openPetition homepage.