German lawmaker and Bundestag member Joana Cotar urged the government to halt its Bitcoin (BTC) sales. Cotar, a popular Bitcoin cheerleader, criticized the move as a hasty selling spree and pointed out that it was counterproductive.
Instead, she persuaded the German authorities to use Bitcoin to combat currency devaluation by accepting it as a strategic reserve currency. This statement came after the German government transferred Bitcoin tokens worth over $195 million to several crypto exchanges.
BTC Sell-Offs Amount to Counterproductive Strategy, Says German Lawmaker
In an X post, Joana Cotar condemned the government’s hasty Bitcoin sell-offs and urged it to halt the selling spree. In her post, Cotar called out President Michael Kretschmer, Minister of Finance Christian Lindner, and Chancellor Olaf Scholz.
She urged the authorities to reconsider their disposal strategy and instead channel the BTC into something more productive.
Cotar argued that such hasty sell-offs could be insensible and counterproductive to the country’s growth. Instead, she urged them to focus on some positivity that could emerge from embracing the primary crypto asset.
Also, the Bitcoin activist highlighted some benefits Germany could enjoy with Bitcoin. She noted that Germany could use BTC to diversify its treasury assets and spike innovative growth in the digital asset space.
In addition, she pointed out that the token could combat currency devaluation by serving as a hedge against inflation.
Cora stated, “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.“
Cora used the letter to invite some German politicians to the crypto event “Bitcoin Strategies for Nation States.” According to her post, the lecture event slated for October 17 will feature Samson Mow, JAN3 CEO.
The event would explore EL Salvador’s proactive and leading role in adopting BTC as a legal tender in 2021. Also, it will reflect on the possibilities of improving a nation’s economic transactions via similar initiatives.
Further, discussions will revolve around issuing Bitcoin-backed government bonds to attract more investors and increase BTC adoption.
German Government Embarks on Bitcoin Selling Spree
The German government has made a series of transfers involving a whopping amount of BTC tokens.
According to data from Arkham, an on-chain intelligence platform, the country has sold about 7,583 Bitcoin since June 19. At current crypto market prices, the sales amounted to over $434.9 million.
Also, on July 4, the government completed its recent BTC sales, moving about $172 million worth of BTC to some crypto exchanges, including Kraken, Coinbase, and Bitstamp.
The German government wallets currently hold 41,774 BTC tokens worth approximately $2.26 billion. The Bitcoin holdings were among the assets confiscated during an investigation of Movie2k.to, an illegal movie streaming platform. The authorities seized almost 50,000 BTC from the site.
Germany’s recent sales have triggered several reactions within the crypto community. They also contributed to the spike in market volatility, which saw a drastic decline in Bitcoin’s price.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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