Bitcoin
German lawmaker calls on government to halt Bitcoin liquidation and adopt it as strategic reserve
German lawmaker calls on government to halt Bitcoin liquidation and adopt it as strategic reserve
German legislator and Bitcoin advocate Joana Cotar has called on the government to cease its Bitcoin liquidation. In a Letter In a letter to members of the German government on July 4, Cotar implored officials to “refrain from a hasty divestment of state-owned Bitcoin.” Instead, Cotar called on the government to adopt the cryptocurrency as a “strategic reserve currency” to mitigate risks associated with the traditional financial system.
Cotar criticized further liquidations as “unwise” and “counterproductive” to Germany’s interests. She also invited four German politicians to participate in the “Bitcoin Strategies for Nation States” event in October, aiming to persuade their peers about 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 liquidation, on July 4, involved $172 million worth of Bitcoin transferred to exchanges including Coinbase, Kraken and Bitstamp. Germany currently holds 42,274 Bitcoin, valued at around $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.