Citizens' Initiative Calls for an Austrian State Bitcoin Reserve
A new Citizens' initiative is causing a stir in Austria: A group of Bitcoin enthusiasts is calling for establishing a state Bitcoin reserve worth 2.3 billion euros. The initiators see this as a strategic hedge against inflation and an opportunity to achieve financial independence for the country. However, the project is not without controversy.
The idea of a state Bitcoin reserve remains controversial. While supporters see it as a forward-looking strategy for financial independence, critics warn of the high risks associated with the volatility of the cryptocurrency. / Picture: © Wikimedia Commons; Martin E. Walder, CC BY-SA 3.0 Unported DEED (https://creativecommons.org/licenses/by-sa/3.0/deed.en)
Launched on January 30, 2025, the Citizens' initiative entitled “Bitcoin for Austria” is led by Christian Friedl, a mechanical engineer, and Alexander Rotheneder, a business information scientist. Their main concern is the creation of a national Bitcoin reserve, which should be based on the country's existing gold reserve. They argue that Bitcoin - as an inflation-protected and decentralized currency - represents a complementary safeguard to traditional foreign exchange reserves.
In addition to the strategic Bitcoin reserve, the Citizens' initiative includes other core demands:
- Tax relief: Profits from Bitcoin transactions should be tax-free after a minimum holding period to encourage long-term investment.
- Clear legal framework: A separate legal framework for cryptocurrencies should be introduced to ensure legal certainty for investors and companies.
- Financial education: The topic of Bitcoin and money creation should be integrated into schools, universities, and further education institutions.
- Sustainability and energy efficiency: Surplus renewable energy will be used specifically for mining Bitcoin to stabilize the energy grids and provide economic support.
Bitcoin as protection against inflation?
The proponents of the Citizens' initiative argue that Bitcoin - due to its limitation to a maximum of 21 million coins - represents an alternative to traditional fiat currencies, which can lose purchasing power in times of high inflation. “Bitcoin offers citizens a unique opportunity to achieve financial independence and protect their assets from inflation,” explains Rotheneder.
However, this argument is controversial. Critics point to the high volatility of Bitcoin: although the price of Bitcoin reached an all-time high of 109,000 US dollars when Donald Trump became US president again on 20 January 2025, the value can fall again just as quickly. In addition, Bitcoin has so far been more of a speculative object than a currency suitable for everyday use.
Resistance from politics and business
While proponents of Bitcoin speak of it as a “hard” currency, many experts see risks for the financial stability of the state. The European Central Bank (ECB) has repeatedly expressed its criticism of cryptocurrencies. ECB President Christine Lagarde recently stated that Bitcoin is not an option as a state reserve, as it offers neither the necessary liquidity nor security.
There has also been little support for the project in Austrian politics so far. Only the Greens have mentioned cryptocurrencies in their party manifesto - albeit in a negative context, namely as a potential instrument of money laundering. Other parties have so far kept a low profile.
View of the OenB
The Austrian National Bank (OeNB) has been critical of cryptocurrencies such as Bitcoin in the past. In a publication from 2014, Bitcoin was described as a speculative asset that poses a considerable risk to the owners' assets due to significant exchange rate fluctuations and is therefore less suitable for monetary purposes.
In a further statement, the OeNB emphasized that services related to cryptocurrencies are increasingly regulated, but that there is no value stabilization responsibility or deposit protection for crypto assets. The acquisition of cryptocurrencies therefore remains comparatively risky.
The OeNB does not currently have any specific statements on the current Bitcoin Citizens' initiative. However, given its position to date, it can be assumed that the OeNB will continue to take a cautious stance towards the integration of Bitcoin into state reserves.
Support and prospects of success
By last weekend, almost 1,900 people had supported the Citizens' initiative. However, at least 100,000 signatures are required for it to reach the parliamentary process. There is still a long way to go.
A citizens' Initiative in Austria is a political initiative with which citizens can initiate a legislative procedure. It begins with registration with the Ministry of the Interior, followed by an initiation procedure in which at least 8,969 declarations of support must be collected. If the petition reaches 100,000 signatures or the support of one-sixth of eligible voters from each of the three federal states during the registration week, it is dealt with in the National Council. There it is first assigned to a committee, which must begin preliminary deliberations within one month. After a maximum of four months, a report is drawn up and the issue is debated in plenary.
The declarations of support can be submitted both online via the “ID Austria” system and at municipal offices. The initiators hope that a growing number of Bitcoin owners and crypto enthusiasts will support the Citizens' initiative and bring it into the political discussion. Whether the Citizens' initiative will be successful depends not only on the number of signatures collected but also on whether the political landscape in Austria can be convinced of the need for a Bitcoin reserve.