Germany’s CDU Shifts Stance on Cryptocurrency: Aiming to Become a Bitcoin Hub

Germany’s Christian Democratic Union (CDU), once known for its strict approach to cryptocurrency regulation, is now embracing a pro-crypto stance as part of its Agenda 2030 plan. This dramatic shift aligns with the party’s electoral success in Germany’s February 2025 elections. The CDU has outlined an ambitious vision: turning Germany into a thriving center for the digital asset economy. This represents a stark contrast to their past, when they called for banning anonymous crypto transactions and requiring self-hosted wallets to be registered. These proposals faced heavy criticism from the German crypto community who saw them as jeopardizing financial freedom and privacy. 2025 saw a significant change in approach with the CDU’s coalition pact with the Christian Social Union (CSU) and the Social Democratic Party (SPD). Though the treaty only briefly mentions crypto, it sets up an agenda to investigate regulations for crypto assets, grey capital markets, and shadow banks, seeking to address loopholes. This signifies a less aggressive stance compared to the party’s earlier hardline position. During coalition negotiations in March, SPD successfully pushed for the elimination of Germany’s popular crypto tax break, which allows investors to sell Bitcoin, Ethereum, and other digital assets tax-free if held for over one year. Luckily, the CDU managed to protect this crucial policy, demonstrating their commitment to crypto friendliness. The outcome of this shift marks potential for a new era in German cryptocurrency regulation, with the country potentially joining Switzerland, Singapore, and the UAE as a major hub in the field.