- German MP Joana Cotar has urged the government to halt its Bitcoin sales frenzy.
- She argued that selling Bitcoin rapidly is counterproductive and urged for a strategic reserve currency approach.
- Cotar emphasized Bitcoin’s potential to safeguard against inflation and currency devaluation.
German MP Calls Government to Stop Bitcoin Sell-Off and Consider Strategic Reserves
German MP Urges Halt to Bitcoin Sales
In a striking appeal, Joana Cotar, an independent member of the Federal Parliament, has called on the German government to cease its large-scale Bitcoin sales. Cotar specifically addressed Michael Kretschmer, Deputy Chairman of CDU, Finance Minister Christian Lindner, and Chancellor Olaf Scholz. She labeled the ongoing Bitcoin sell-off as nonsensical and inefficient, inviting these officials to join her at a conference with Bitcoin advocate Samson Mow on October 17.
Risks of Large-Scale Bitcoin Sales
The continuous Bitcoin sales have had a notable impact on the market. Recently, Bitcoin’s price plummeted to $54,000 due largely to sales by the German government and Mt. Gox’s repayment efforts. Cotar, a staunch Bitcoin supporter, urged the government to reconsider its hastened Bitcoin liquidation strategy. She advocates for Bitcoin to be utilized as a “strategic reserve currency” to buttress against potential risks within the traditional financial ecosystem.
Bitcoin as a Strategic Reserve Currency
Cotar believes that retaining Bitcoin could diversify Germany’s treasury assets, offering protection against inflation and currency devaluation. According to Cotar, such a strategy could also spur domestic innovation. Drawing attention to the economic independence that Bitcoin could fortify, she suggests developing a comprehensive Bitcoin strategy, inclusive of issuing Bitcoin bonds and fostering a favorable regulatory environment.
Financial Data and Strategic Recommendations
Data from the crypto intelligence platform Arkham reveals that the German government has offloaded approximately 8,083 BTC worth around $462.1 million since July 19. This leaves Germany with only about 41,774 Bitcoins, valued at $2.27 billion. Cotar argues that the mass sale of Bitcoin is illogical and detrimental to the nation’s financial stability. Instead, she recommends retaining Bitcoin in state reserves, potentially issuing Bitcoin-based bonds, and creating a conducive regulatory framework to further BTC-driven innovation.
Industry Response and Future Implications
Justin Sun, founder of Tron, has recently offered to purchase Germany’s remaining $2.3 billion worth of Bitcoin to minimize market disruption. The continued sale of Bitcoin by Germany, combined with the planned repayment of $9 billion by Mt. Gox, has undoubtedly affected Bitcoin’s market performance. Cotar’s proposal for a more strategic handling of Bitcoin assets could pave the way for a more resilient economic strategy in the face of financial uncertainties.
Conclusion
Joana Cotar’s call for a halt to the rapid sale of Bitcoin highlights the need for a strategic approach to managing digital assets. Her advocacy for Bitcoin as a strategic reserve currency underscores potential benefits, including protection against inflation and currency devaluation, and fostering domestic innovation. Moving forward, Germany’s stance on Bitcoin could significantly impact both the national financial landscape and the broader cryptocurrency market.
