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German MP Urges Government Halt to Rapid Bitcoin Sell-Off

German member of parliament Joana Cotar said the mass Bitcoin sell-off is not sensible as it could be used to diversify treasury assets and protect against currency devaluation.
German MP Urges Government Halt to Rapid Bitcoin Sell-Off

German lawmaker and Bitcoin activist Joana Cotar called the government to halt its “hasty” Bitcoin sell-off and consider adopting it as a “strategic reserve currency” to protect against risks in the traditional financial system.

In a letter to members of Germany’s government on July 4, Cotar said, “[I] urge you to refrain from a hasty disposal of state-owned Bitcoin.”

Cotar believes Bitcoin can help Germany diversify its treasury assets, hedge against inflation and currency devaluation, and promote innovation in the country.

Further, selling is not “sensible” and is “counterproductive” for the country, according to Cotar. She also invited four German politicians to the “Bitcoin Strategies for Nation States” event in October 2023 to potentially persuade them of Bitcoin’s benefits.

Source: Joana Cotar

Since June 19, the German government has sold 7,583 Bitcoin, worth $434.9 million at current prices, according to cryptocurrency intelligence platform Arkham Intelligence.

The latest sale on July 4 involved $172 million worth of Bitcoin transferred to Coinbase, Kraken, and Bitstamp cryptocurrency exchanges. Germany now holds 42,274 Bitcoin, worth $2.4 billion, across all its wallets.

Cotar wants the mass selling to stop immediately, emphasizing that Bitcoin could strengthen the country’s economic independence and increase its resilience to external financial uncertainties.

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

“Instead of divesting, I recommend developing a comprehensive Bitcoin strategy. This could include keeping Bitcoin in the state treasury, issuing Bitcoin bonds, or creating a conducive regulatory environment,” Cotar said in a translated statement.

Part of this Bitcoin strategy would involve establishing a legal framework to promote Bitcoin-based innovation and attract top talent worldwide.

The German government has not confirmed whether it plans to sell the rest of its Bitcoin.

However, Germany already has a keen buyer: Tron founder Justin Sun recently offered to buy the country’s $2.3 billion worth of Bitcoin to minimize market impact.

Germany’s continued Bitcoin sell-off, along with Mt. Gox’s $9 billion reimbursement plan to creditors, has been linked to Bitcoin’s recent price slump.

Bitcoin is trading at $57,810, down 6% over the last week and 18% over the previous month.

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