German MP and major Bitcoin advocate Joana Cotar has called on the government to halt its rapid sale of Bitcoin.
Instead, she advocates adopting Bitcoin as a “strategic reserve currency” to protect against potential risks in the traditional financial system.
In a July 4 X post, the crypto-friendly politician said Bitcoin (BTC) could assist Germany in diversifying its treasury assets, acting as a hedge against inflation and currency devaluation while also promoting innovation within the country.
Statt #Bitcoin als strategische Reservewährung zu halten, wie es in den USA bereits debattiert wird, verkauft unsere Regierung im großen Stil. Ich habe @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz darüber informiert, warum dies nicht nur nicht sinnvoll, sondern… pic.twitter.com/v9FpzmfLbp
— Joana Cotar (@JoanaCotar) July 4, 2024
Cotar added that a continued sell-off would not be deemed sensible and, in turn, would be counterproductive for the nation. She went on to invite four German lawmakers to the “Bitcoin Strategies for Nation States” event held on October 17 to potentially convince her peers of Bitcoin’s benefits.
Per data from the cryptocurrency intelligence platform Arkham, the German government has already offloaded 8083 BTC worth around $462.1 million at current prices since July 19.
Following the selloffs, Germany now holds only 41,774 Bitcoin, worth $2.27 billion, across all its wallets.
Cotar emphasized the need to halt the mass selling of Bitcoin immediately, arguing that it could bolster Germany’s economic independence and enhance resilience to external financial uncertainties.
Original and translated versions of Joana Cotar’s letter to the German government | Source: Joana Cotar
“Instead of divesting, I recommend developing a comprehensive Bitcoin strategy. This could include keeping Bitcoin in the state treasury, issuing Bitcoin bonds or creating a conducive regulatory environment,” Cotar said in the translated statement.
A key component of that strategy would be establishing a legal framework to foster Bitcoin-based innovation and attract top talent globally.
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As crypto.news reported earlier in June, the German Federal Criminal Police Office (BKA) originally seized about 50,000 BTC from the operators of the popular piracy movie website Movie2k.to in 2013. The BKA acquired the Bitcoin in mid-January, following a “voluntary transfer” from the suspects.
Meanwhile, the German government is yet to confirm whether it plans to offload the remaining Bitcoin.
The nation already has a keen buyer, with Tron founder Justin Sun recently proposing to buy the country’s $2.3 worth of Bitcoin in order to minimize market damage.
However, Germany’s ongoing Bitcoin sell-off and Mt. Gox’s $9 billion compensation plan to creditors have been blamed for Bitcoin’s latest price drop.
Bitcoin’s price has continued to fall, dropping below $55,000 and returning to levels last seen in February.
Bitcoin’s sell-off has accelerated following claims that the collapsed cryptocurrency exchange Mt. Gox transferred around 47,000 BTC (worth about $2.6 billion) to a new wallet before its $9 billion payout.
Read more: Gamdom Bitcoin’s quick dip below $57k forces beginners to capitulate, CryptoQuant says