German Lawmaker Appeals for Suspension of Bitcoin Transactions Citing Urgent Necessity
German Member of Parliament and prominent Bitcoin advocate Joana Cotar has urged the government to cease its aggressive Bitcoin sales. Instead, she proposes adopting Bitcoin as a “strategic reserve currency” to safeguard against potential risks in the conventional financial system.
In a post on July 4, the crypto-friendly politician highlighted Bitcoin’s potential to help Germany diversify its treasury assets. She emphasized that Bitcoin could serve as a hedge against inflation and currency devaluation, while also fostering innovation within the country.
Cotar criticized the ongoing sell-off of Bitcoin by the German government, labeling it as imprudent and counterproductive. To rally support for her stance, she invited four German lawmakers to attend the “Bitcoin Strategies for Nation States” event on October 17, aiming to demonstrate the benefits of Bitcoin.
According to data from the cryptocurrency intelligence platform Arkham, Germany has already sold off 8,083 BTC, valued at approximately $462.1 million since July 19. As a result, Germany now holds only 41,774 Bitcoin across its wallets, amounting to $2.27 billion.
Cotar stressed the immediate need to halt the mass sale of Bitcoin, arguing that it could strengthen Germany’s economic sovereignty and bolster its resilience against external financial uncertainties.
“Instead of divesting, I recommend developing a comprehensive Bitcoin strategy,” Cotar stated in a translated message. “This could involve retaining Bitcoin in the state treasury, issuing Bitcoin bonds, or creating a supportive regulatory framework.”
A critical aspect of this strategy, she noted, would be establishing a legal framework conducive to Bitcoin-based innovation and attracting global talent.
In related news from earlier in June, the German Federal Criminal Police Office (BKA) gained possession of approximately 50,000 BTC seized from the operators of Movie2k.to in 2013. Following a voluntary transfer from the suspects, the BKA took control of the Bitcoin in mid-January.
Meanwhile, the German government has yet to confirm its intentions regarding the remaining Bitcoin holdings. There has been interest from potential buyers, including Tron founder Justin Sun, who proposed purchasing Germany’s $2.3 billion worth of Bitcoin to mitigate market impact.
However, Germany’s ongoing sell-off of Bitcoin, coupled with the $9 billion compensation plan by Mt. Gox to its creditors, has been cited as contributing factors to Bitcoin’s recent price decline. The cryptocurrency’s price has dipped below $55,000, returning to levels last observed in February.
Bitcoin’s sell-off accelerated amid reports that Mt. Gox transferred around 47,000 BTC, valued at about $2.6 billion, to a new wallet ahead of its $9 billion payout.
For more information, read:
– Bitpanda taps Deutsche Bank to process fiat transfers in Germany
– Gamdom Bitcoin’s quick dip below $57k forces beginners to capitulate, CryptoQuant says
