German Lawmaker Joana Cotar Urges Government to Halt Bitcoin Sell-off and Develop a Comprehensive Bitcoin Strategy

German lawmaker and Bitcoin advocate Joana Cotar is calling on the government to halt its rapid Bitcoin sell-off.

German lawmaker and Bitcoin advocate Joana Cotar has called on the government to halt its rapid sell-off of the digital currency. In a letter to the German government on Monday, Cotar highlighted Bitcoin’s potential as a strategic reserve currency to help the country hedge against inflation and currency devaluation.

Cotar also emphasized the importance of using Bitcoin to promote technological innovation and strengthen Germany's economic independence. She urged the government to reconsider its mass Bitcoin sell-off, which began on June 19.

According to blockchain data, Germany has sold 7,583 Bitcoin, which are now being transferred to cryptocurrency exchanges. At current prices, the total value of the Bitcoin sold stands at $434.9 million.

The sell-off continued on Monday, with $172 million worth of Bitcoin being transferred to exchanges like Coinbase, Kraken, and Bitstamp. As of Monday, Germany still holds 42,274 Bitcoin, valued at approximately $2.4 billion.

Cotar argued that selling off such a large amount of Bitcoin quickly could have a negative impact on the market, especially given that Germany now holds less than half of its confiscated Bitcoin. She believes that the government should instead be looking at ways to diversify treasury assets and protect against currency devaluation.

“I urge you to refrain from a hasty disposal of state-owned Bitcoin. Instead of divesting, I recommend developing a comprehensive Bitcoin strategy,” Cotar wrote in the letter.

As part of her efforts to promote a comprehensive Bitcoin strategy in Germany, Cotar also invited four German politicians to the “Bitcoin Strategies for Nation States” event, which will be held in October. At the event, officials will be able to discuss these ideas in further detail.

One of the key elements of Cotar’s proposed strategy is establishing a legal framework to support Bitcoin-based innovation. By doing this, Germany could attract top talent from around the world and enhance its position in the global crypto market.

Reactions to Germany’s BTC Sell-Off and Market Impact

Tron founder Justin Sun recently reacted to the news of Germany’s continued Bitcoin sell-off. In a tweet, Sun offered to buy the country's remaining Bitcoin, which are valued at $2.3 billion, to minimize the impact on the market. However, the German government has not confirmed whether it plans to sell the rest of its Bitcoin holdings.

The sell-off, along with Mt. Gox’s $9 billion reimbursement plan to creditors, has been linked to the recent decline in Bitcoin prices. Currently, Bitcoin is trading at $54,350, down 11.53% over the last week and 23.64% over the last month.

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