German Lawmaker Urges Government to Halt Bitcoin Sell-Off and Adopt It as Strategic Reserve

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German Lawmaker Urges Government to Halt Bitcoin Sell-Off and Adopt It as Strategic Reserve

German lawmaker and Bitcoin advocate Joana Cotar has called on the government to cease its sell-off of Bitcoin. In a letter addressed to members of Germany’s government on July 4, Cotar implored officials to “refrain from a hasty disposal of state-owned Bitcoin.” Instead, Cotar asked the government to embrace the cryptocurrency as a “strategic reserve currency” to mitigate risks associated with the traditional financial system.

Cotar criticized further sell-offs as “not sensible” and “counterproductive” for Germany’s interests. She also invited four German politicians to attend the “Bitcoin Strategies for Nation States” event in October, aiming to persuade her peers of Bitcoin’s strategic value. She argued that Bitcoin could help Germany diversify its treasury assets, act as a hedge against inflation and currency devaluation, and foster innovation within the country.

Since June 19, the German government has sold 7,583 Bitcoin, valued at approximately $434.9 million at current prices, according to cryptocurrency intelligence platform Arkham. The most recent sell-off, on July 4, involved $172 million worth of Bitcoin transferred to exchanges such as Coinbase, Kraken, and Bitstamp. Currently, Germany holds 42,274 Bitcoin, worth about $2.4 billion.

Part of Cotar’s proposed strategy involves establishing a legal framework to encourage Bitcoin-based innovation and attract top talent globally. She believes such measures would not only safeguard Germany’s financial future but also position it as a leader in the digital currency space.