German parliamentarian and Bitcoin advocate Joana Cotar has called on the government to halt its impulsive selling of Bitcoin and instead embrace it as a “strategic reserve currency” to safeguard against risks within the conventional financial system.
Addressing members of Germany’s government on July 4, the Bitcoin-friendly politician urged them to resist hastily disposing of the state-owned Bitcoin. Cotar highlighted that Bitcoin (BTC) could assist Germany in diversifying its treasury assets, acting as a hedge against inflation and currency devaluation, and fostering innovation within the country.
Cotar emphasized that further selling is irrational and counterproductive for Germany, and she extended an invitation in her letter to four German politicians to attend the “Bitcoin Strategies for Nation States” event in October, with the potential to influence her peers positively.
According to cryptocurrency intelligence platform Arkham, the German government has already sold 7,583 Bitcoins, valued at $434.9 million based on current prices, since June 19. In the most recent sell-off on July 4, $172 million worth of Bitcoin was transferred to cryptocurrency exchanges Coinbase, Kraken, and Bitstamp. Currently, Germany holds 42,274 Bitcoins, amounting to $2.4 billion, across all its wallets.
Cotar advocates for an immediate halt to the mass selling, asserting that Bitcoin could enhance the country’s economic autonomy and bolster its resilience against external financial uncertainties.
In a translated statement, Cotar proposed, “Instead of divesting, I recommend formulating a comprehensive Bitcoin strategy which may involve retaining Bitcoin in the state treasury, issuing Bitcoin bonds, or creating a favorable regulatory environment.” This strategy would also encompass establishing a legal framework to foster Bitcoin-driven innovation and attract top global talent.
While the German government has not confirmed its plans regarding the remaining Bitcoin holdings, Tron founder Justin Sun has expressed interest in purchasing Germany’s remaining Bitcoin worth $2.3 billion to minimize market impact. The ongoing sell-off of Bitcoin by Germany, along with Mt. Gox’s $9 billion reimbursement plan to creditors, has been attributed to the recent decline in Bitcoin’s price.
Currently, Bitcoin is trading at $57,810, experiencing a 6% decrease over the past week and an 18% decline over the last month.
The question remains: could a financial crisis bring an end to the ongoing bullish trend in the crypto market?