German Lawmaker Urges Immediate Stop to Big Government Bitcoin Sell-off

German Lawmaker, German Lawmaker Urges Immediate Stop to Big Government Bitcoin Sell-off
German Lawmaker Urges Immediate Stop to Big Government Bitcoin Sell-off

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.

Bitcoin Balance Trends 2024 - Source:
Bitcoin Balance Trends 2024 . Source: Arkham

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 Plea to Halt Bitcoin Sell-off - Source: Twitter/@JoanaCotar
Joana Cotar’s Plea to Halt Bitcoin Sell-off. Source: @JoanaCotar

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.

Original and translated version of Joana Cotar’s letter to Germany’s government. Source: Joana Cotar
Original and translated version of Joana Cotar’s letter to Germany’s government. Source: Joana Cotar

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.

Justin Sun’s $2.3B Offer. Source: @justinsuntron
Justin Sun’s $2.3B Bitcoin Offer. Source: @justinsuntron

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.

Bitcoin Price Drop: July 2024 - Source: CoinMarketCap
Bitcoin Price Drop. Source: CoinMarketCap

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