Joana Cotar says Bitcoin can combat inflation and restore wealth control, challenging ECB’s 2% inflation target.
Cotar believes Bitcoin adoption grants individuals financial sovereignty, independent from banks and government control.
Cotar emphasizes Bitcoin’s role in providing economic relief to developing countries through financial inclusion.
Joana Cotar, a German parliament member, has made a strong case for Bitcoin, suggesting that a well-executed strategy involving the cryptocurrency has the potential to reshape economies.
In a recent statement, Cotar highlighted Bitcoin’s role in combating inflation, arguing that the current monetary system, particularly the European Central Bank's (ECB) stance on inflation, is eroding citizens' wealth.
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She described the ECB’s 2% inflation target as a form of “stealing money from the people every month.” For Cotar, Bitcoin offers a solution to this issue by granting individuals sovereignty over their finances, independent from government control or the banking system.
Bitcoin as a Solution to Inflation
Cotar’s stance is rooted in the belief that Bitcoin can directly address inflationary concerns. According to her, people adopting Bitcoin as a strategic reserve and method of payment could help preserve wealth in the face of rising prices.
She stressed that, while nations in Europe and other developed countries face challenges, those in developing regions could benefit even more from Bitcoin. By offering financial inclusion and economic independence, Bitcoin has the potential to provide much-needed relief in countries where inflation rates are more severe.
Cotar also emphasized the significance of Bitcoin in securing basic freedoms for individuals, enabling them to regain control over their economic circumstances.
Recent German Bitcoin Sell-Off Raises Questions
In contrast to Cotar's advocacy for Bitcoin, Germany, On July 12, exhausted its remaining Bitcoin holdings. According to Arkham Intelligence, Germany’s government offloaded 3,846 Bitcoin, completing a series of transactions over several weeks.
The Bitcoin sold was primarily seized assets, which were gradually liquidated by the government. Notably, this action by the German government has sparked discussions about the country’s approach to crypto holdings.
Seized Bitcoin Assets and Market Impact
Germany’s decision to sell its Bitcoin reserves has had a notable impact on the broader market. In July, the German government liquidated around 50,000 Bitcoin, playing a substantial role in keeping Bitcoin’s price below its 200-day EMA for that month.
These actions, involving institutional deposit services such as “Flow Traders and 139Po,” highlight the government's ongoing management of seized assets. While Cotar advocates for adopting Bitcoin as a long-term strategy, the recent sell-off signals a different stance within certain governments.
