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German Lawmaker Urges Government to Stop Bitcoin Sales and Adopt It as Strategic Reserve
German Lawmaker Urges Government to Stop Bitcoin Sales and Adopt It as Strategic Reserve
German legislator and Bitcoin Lawyer Joana Cotar has asked the government to stop selling Bitcoin. In a letter addressed to members of the German government on July 4, Cotar implored officials to “refrain from hasty disposal of state-owned Bitcoin.” Instead, Cotar called on 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 “nonsensical” and “counterproductive” to Germany’s interests. He also invited four German politicians to attend a “Bitcoin Strategies for Nation States” event in October, aiming to convince his peers of Bitcoin’s strategic value. He argued that Bitcoin could help Germany diversify its treasury assets, serve as a hedge against inflation and currency devaluation, and foster innovation within the country.
Since June 19, the German government has sold 7,583 bitcoins, worth about $434.9 million at current prices, according to cryptocurrency intelligence platform Arkham. The most recent sale, on July 4, involved $172 million worth of bitcoins being transferred to exchanges such as Coinbase, Kraken, and Bitstamp. Germany currently holds 42,274 bitcoins, 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. He believes such measures would not only safeguard Germany’s financial future, but also position it as a leader in the digital currency space.