Joana Cotar, a prominent German legislator and advocate for Bitcoin, has called upon the government to halt its swift sale of Bitcoin and instead embrace it as a “strategic reserve currency” against vulnerabilities in the traditional financial system.
In a letter addressed to members of Germany’s government on July 4th, the Bitcoin-friendly politician emphasized, “[I] urge you to refrain from a hasty disposal of state-owned Bitcoin.”
Cotar highlighted Bitcoin’s potential to diversify Germany’s treasury assets, act as a hedge against inflation and currency devaluation, and stimulate innovation within the country. She criticized further sell-offs as “unsound” and “counterproductive,” advocating for a shift in strategy to benefit the nation.
The German government has already sold 7,583 Bitcoin, valued at $434.9 million as of current rates, since June 19th, according to cryptocurrency intelligence platform Arkham. On July 4th alone, transactions totaling $172 million were transferred to major cryptocurrency exchanges Coinbase, Kraken, and Bitstamp. Germany currently retains 42,274 Bitcoin, valued at $2.4 billion across all its wallets.
Cotar stressed the importance of halting the mass selling, asserting that Bitcoin could bolster the country’s economic sovereignty and enhance its resilience to external financial uncertainties.
“Instead of divesting, I recommend developing a comprehensive Bitcoin strategy,” Cotar proposed in her statement. This strategy could involve retaining Bitcoin in the state treasury, issuing Bitcoin bonds, or creating a favorable regulatory environment. She also emphasized the need for a legal framework that supports Bitcoin-based innovation and attracts global talent.
The German government has not confirmed its intention to sell the remaining Bitcoin holdings. Meanwhile, Tron founder Justin Sun has expressed interest in purchasing Germany’s remaining $2.3 billion worth of Bitcoin to minimize market impact.
Recent declines in Bitcoin’s price have been linked to Germany’s ongoing sell-off and the $9 billion reimbursement plan for Mt. Gox creditors. Currently, Bitcoin is trading at $57,810, marking a 6% decrease over the past week and an 18% decrease over the past month.
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