YEREVAN (CoinChapter.com) — German lawmaker and Bitcoin advocate Joana Cotar is calling on the government to halt its rapid Bitcoin sell-off. In a letter to the German government on July 4, Cotar emphasized that Bitcoin could diversify treasury assets and protect against currency devaluation.
“[I] urge you to refrain from a hasty disposal of state-owned Bitcoin,”
she wrote.
Cotar highlighted the potential of Bitcoin as a strategic reserve currency. She argued that Bitcoin can help Germany hedge against inflation and currency devaluation, and promote technological innovation.
German Government’s Bitcoin Sell-off and Current Holdings
Since June 19, the German government has sold 7,583 Bitcoin, valued at $434.9 million at current prices. This continued on July 4, with $172 million worth of Bitcoin transferred to cryptocurrency exchanges such as Coinbase, Kraken, and Bitstamp. Currently, Germany holds 42,274 Bitcoin, valued at approximately $2.4 billion.
Cotar stated that this mass selling is counterproductive. She believes that Bitcoin can strengthen the country’s economic independence and resilience to external financial uncertainties.
“Instead of divesting, I recommend developing a comprehensive Bitcoin strategy,”
Cotar said.
Joana Cotar’s Call for a Comprehensive Bitcoin Strategy in Germany
German lawmaker Joana Cotar proposes that Germany develop a detailed Bitcoin strategy rather than selling off its holdings. This strategy could include keeping Bitcoin in the state treasury, issuing Bitcoin bonds, and creating a supportive regulatory environment.
Cotar’s letter also invited four German politicians to the “Bitcoin Strategies for Nation States” event in October to discuss these ideas.
A key part of Cotar’s strategy is establishing a legal framework to promote Bitcoin-based innovation. By doing this, Germany could attract top talent from around the world and enhance its position in the global crypto market.
Reactions to Germany’s BTC Sell-off and Market Impact
The continued Bitcoin sell-off by the German government has drawn reactions. Tron founder Justin Sun recently offered to buy the country’s remaining Bitcoin worth $2.3 billion to minimize market impact. Despite this, the German government has not confirmed whether it plans to sell the rest of its Bitcoin holdings.
The sell-off, along with Mt. Gox’s $9 billion reimbursement plan to creditors, has been linked to the recent decline in Bitcoin prices. Currently, Bitcoin is trading at $54,350, down 11.53% over the last week and 23.64% over the last month.
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