Bitcoin Magazine

Germany Proposes National Bitcoin Reserve, Views Bitcoin as ‘State-Free’ Money

Germany’s Alternative for Germany (AfD) party has introduced a proposal to create a national Bitcoin reserve. 

The initiative marks a potential turning point for Europe’s largest economy, which only a year ago was criticized for liquidating billions in seized Bitcoin holdings.

The motion, which needs to be approved, would make Germany the first major European nation to integrate Bitcoin directly into its national reserves, signaling a growing shift in Europe toward viewing Bitcoin not as a speculative asset, but as a sovereign reserve instrument. 

AfD’s vision for a Bitcoin as “state-free money”

The AfD’s motion, submitted last week, calls on the federal government to begin accumulating Bitcoin as part of its long-term reserve strategy. 

The proposal argues that the EU’s MiCA framework was designed for centrally issued tokens and should not apply to Bitcoin, which has no issuer or central authority. 

It urges the government to avoid regulatory burdens on non-custodial wallet providers and Lightning node operators, maintain Germany’s tax exemption on Bitcoin held for more than a year, and ensure that private mining or Lightning activity is not classified as commercial. 

The AfD frames Bitcoin as “state-free money” that protects individual freedom in contrast to the planned digital euro, which it warns could enable surveillance and control.

JUST IN: Germany’s second-largest party, AfD, introduced a motion to build a #Bitcoin reserve. pic.twitter.com/TeM4yUoIVe

— Bitcoin Magazine (@BitcoinMagazine) October 29, 2025

In the proposal’s Section I, point 5, the AfD criticizes the German government for failing to recognize Bitcoin’s strategic potential, specifically noting that Berlin has not considered holding Bitcoin as part of its national reserves. 

Later in the explanatory section, the document expands on this idea, describing Bitcoin as “Outside Money” and suggesting that, in times of global monetary and geopolitical instability, it could serve as a “potential, easily transferable asset within state currency reserves.”

The motion marks the first formal attempt in Germany’s legislature to position Bitcoin as a strategic national asset.

Germany: From seller to ‘hodler’

The proposal comes less than a year after the German government completed one of the largest state-level Bitcoin selloffs in history.

Between June and July 2024, German authorities sold nearly 50,000 BTC — originally seized from the operators of the piracy site Movie2k.to — worth about $3 billion at the time. 

The selloff triggered a market correction of roughly 18% and drew heavy criticism from the Bitcoin community, which argued that Germany squandered a chance to hold a scarce, appreciating asset.

By mid-July 2024, blockchain data confirmed that wallets linked to the German government were empty, after sending the final tranches of Bitcoin to exchanges and market makers.

A European race for Bitcoin sovereignty

Germany’s move follows closely on the heels of France, where the center-right Union of the Right and Centre (UDR) party, led by lawmaker Éric Ciotti, introduced an ambitious bill to create a “National Bitcoin Strategic Reserve.”

The French proposal targets 2% of Bitcoin’s supply — approximately 420,000 BTC — over a seven-to-eight-year period. It would fund accumulation through surplus energy-powered Bitcoin mining, reallocation of savings programs, and even partial tax payments in Bitcoin.

While both France’s and Germany’s initiatives face significant political hurdles, the timing underscores a recognition in Europe that Bitcoin could serve as a tool for financial sovereignty.

If the momentum continues, Europe could soon find itself not debating whether to hold Bitcoin — but who will hold it first.

This post Germany Proposes National Bitcoin Reserve, Views Bitcoin as ‘State-Free’ Money first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Law enforcement agencies in Germany have targeted Hydra, a leading darknet market (DNM). As part of an operation conducted with U.S. support, the German police were able to establish control over the servers of the Russian-language platform in the country and take down its website.

Investigators Hit Hydra in Germany, Confiscate Millions in Crypto

Hydra Market, one of the largest marketplaces on the darknet, has been shut down by German authorities which seized its server infrastructure. According to an announcement by the Federal Criminal Police Office (BKA), law enforcement agents also confiscated bitcoin worth around €23 million ($25 million). The following message appeared on Hydra’s website on Tuesday:

BKA carried out the raid together with the Central Office for Combating Cybercrime (ZIT) at the Public Prosecutor’s Office in Frankfurt which is leading the investigation against Hydra’s operators and administrators. They are wanted for running illegal online platforms facilitating the trade of drugs and money laundering.

The German police noted that Hydra had been active since at least 2015 before the seizures which came after extensive investigations by the BKA and ZIT. They started in August last year and were conducted with the participation of several U.S. agencies.

The darknet marketplace, which was accessible via the Tor network, was targeting Russian speakers. It had around 17 million customers and over 19,000 registered sellers, the press release detailed. Besides banned substances, these also offered stolen data, forged documents and digital services.

Hydra became a major darknet market after overtaking another Russian platform, DNM Ramp. According to the data compiled by the blockchain forensics company Chainalysis, the region of Eastern Europe sends more digital currency to darknet marketplaces than any other region.

Washington has been alleging Moscow’s involvement with malicious cyber actors like DNMs, ransomware groups and other crypto-related crime. In September, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the Russia-based crypto broker Suex which is believed to have received more than $20 million from darknet markets like Hydra.

The Treasury Department has imposed sanctions against Hydra and a crypto exchange called Garantex. The trading platform, which has been operating mostly out of Russia, is suspected of processing over $100 million in transactions linked to illicit actors and darknet markets, including $2.6 million from Hydra.

Meanwhile, the U.S. Department of Justice announced criminal charges against a Russian resident, Dmitry Pavlov, for conspiracy to distribute narcotics and conspiracy to commit money laundering. The 30-year-old Pavlov is allegedly the administrator of Hydra Market’s servers.

German law enforcement officials think that Hydra was likely the darknet market with the highest turnover globally. BKA and ZIT have estimated that its sales reached at least €1.23 billion in 2020 alone. They also noted that the investigations were hampered by the platform’s own ‘Bitcoin Bank Mixer’ service.

Do you think other darknet markets will be targeted after Hydra? Let us know in the comments section below.