Crypto Comeback? Germany’s Next Ruling Party Reverses Its Stance

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Germany’s Christian Democratic Union (CDU) has radically altered its position on cryptocurrency from critic to advocate in the run-up to the formation of the nation’s new government.

The political party, once a leader in advocating hardline regulations against digital assets, now seeks to transform Germany into a Bitcoin business hub, recent reports indicate.

CDU Unveils Pro-Crypto Plans Following Electoral Success

The CDU’s new path came following the victory of Germany’s February 23 elections. The CDU places high value on the issue of cryptocurrencies, a party representative said in an interview with BTC Echo, a German digital currency media platform.

In its Agenda 2030, which the representative said they introduced in January 2025, they “expressly commit” themselves to shaping Germany as an ideal destination for the crypto economy.

This represents a full turnaround from the early part of 2024, when the party—then opposition—suggested prohibiting some transactions and forcing registration for self-hosted crypto addresses. Such proposals upset numerous people in Germany’s bitcoin circles who perceived them as threats to financial freedom.

„Wir wollen und wir werden den Wandel in der Welt für Deutschland mitgestalten. Der Koalitionsvertrag ist ein Aufbruchsignal und ein kraftvolles Zeichen für unser Land: Die politische Mitte unseres Landes ist in der Lage, die Probleme zu lösen, vor denen wir stehen. Die künftige… pic.twitter.com/Yg138rs9i1

— Friedrich Merz (@_FriedrichMerz) April 9, 2025

Proposed Scrapping Of Germany’s Crypto Tax Break

The official coalition treaty between the CDU, its Bavarian sister party CSU, and the Social Democratic Party (SPD) was signed on April 9. It contains only a brief mention of digital assets, vowing to “examine the regulation of crypto assets, the grey capital market and shadow banks for loopholes and close them if necessary.”

As per reports, the SPD had proposed eliminating Germany’s generous crypto tax break in March negotiations. German investors currently do not pay taxes on profits from Bitcoin, Ethereum, or other digital currencies if they keep them for over a year before selling them. This suggestion was excluded from the final deal.

Party Seeks ‘Balance’ Between Innovation And Security

The CDU’s spokesperson underlined that the party is now “fundamentally open to crypto assets” as part of the development of a new financial system.

“We see huge potential for innovation in the underlying blockchain technology,” they added, citing applications in cybersecurity and enhancing value chains.

Meanwhile, the party has not discarded all worries. The representative emphasized that any new legal framework should avoid money laundering and financing terrorism, something they say “still happen with some crypto assets.” The CDU’s reported aim is a “balanced approach to supporting innovation and security.”

New Gov’t Confronts Numerous Priorities Beyond Crypto

CDU chief Friedrich Merz is expected to be the chancellor when the new government is to be sworn in in the first week of May. Yet, crypto regulation might not be at the spotlight. According to reports, Berlin will have to tackle numerous urgent issues such as economic problems, migration policy, and defense issues.

Featured image from Hashdex, chart from TradingView

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