Bitcoin advocate Joana Cotar urged the German government to halt rapid Bitcoin sales and use it as a “strategic reserve currency” for financial protection.
In a letter to German government members on July 4, Cotar advised against the “hasty disposal” of state-owned Bitcoin. She believes that Bitcoin could help Germany diversify its treasury assets, hedge against inflation and currency devaluation, and promote innovation.
Cotar criticized further Bitcoin sell-offs as “counterproductive” and invited four German politicians to the “Bitcoin Strategies for Nation States” event in October to discuss potential benefits.
Since June 19, the German government has sold 7,583 Bitcoin, worth $434.9 million at current prices, according to cryptocurrency intelligence platform Arkham.
The latest sale on July 4 saw $172 million worth of Bitcoin transferred to exchanges Coinbase, Kraken, and Bitstamp. Germany now holds 42,274 Bitcoin, worth $2.4 billion.
Cotar emphasized that halting the mass sell-off could strengthen Germany’s economic independence and resilience. Cotar suggested developing a comprehensive Bitcoin strategy, including keeping Bitcoin in the state treasury, issuing Bitcoin bonds, and creating a supportive regulatory environment. This strategy could attract top talent and promote Bitcoin-based innovation.
The German government has not confirmed whether it will continue selling its Bitcoin. However, Tron founder Justin Sun has offered to buy Germany’s $2.3 billion worth of Bitcoin to minimize market impact.
Germany’s Bitcoin sell-off and Mt. Gox’s $9 billion reimbursement plan to creditors have been linked to Bitcoin’s recent price slump. Bitcoin is currently trading at $57,810, down 6% over the last week and 18% over the last month.
Joana Cotar believes halting rapid Bitcoin sales and using it as a strategic reserve currency could diversify Germany’s treasury, hedge against inflation and currency devaluation, and promote innovation.
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