Bitcoin Advocate Joana Cotar Urges German Government to Halt Rapid Bitcoin Sales, Use It as a 'Strategic Reserve Currency”

Bitcoin advocate Joana Cotar urged the German government to halt rapid Bitcoin sales and use it as a “strategic reserve currency” for financial protection.

Bitcoin advocate Joana Cotar has urged the German government to halt its rapid sale of Bitcoin and instead use it as a “strategic reserve currency” to protect the country's finances.

In a letter to members of the German government on July 4, Cotar warned against the “hasty disposal” of state-owned Bitcoin and highlighted its potential benefits. She argued that Bitcoin could help Germany diversify its treasury assets, hedge against inflation and currency devaluation, and promote innovation.

Instead of holding #Bitcoin as a strategic reserve currency, as is already being debated in the USA, our government is selling on a large scale. I informed @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz why this not only doesn't make sense, but... pic.twitter.com/v9FpzmfLbp

She criticized further sell-offs of Bitcoin as “counterproductive” and invited four German politicians to the “Bitcoin Strategies for Nation States” event in October to discuss the potential advantages.

Since June 19, the German government has sold 7,583 Bitcoin, which is currently valued at $434.9 million, according to Arkham, a cryptocurrency intelligence platform.

The latest sale on July 4 saw $172 million worth of Bitcoin being transferred to Coinbase, Kraken, and Bitstamp, three cryptocurrency exchanges. Germany now holds 42,274 Bitcoin, which is approximately $2.4 billion.

Cotar highlighted that halting the mass sell-off would strengthen Germany's economic independence and resilience. She outlined a comprehensive Bitcoin strategy, which includes keeping Bitcoin in the state treasury, issuing Bitcoin bonds, and creating a supportive regulatory environment. This strategy would reportedly attract top talent and promote Bitcoin-based innovation.

The German government has not yet confirmed whether it will continue selling its Bitcoin, but Tron founder Justin Sun has offered to buy Germany's $2.3 billion worth of Bitcoin to minimize the impact on the market.

Germany's Bitcoin sell-off, along with Mt. Gox's $9 billion reimbursement plan to creditors, has been linked to Bitcoin's recent price decline. The cryptocurrency is currently trading at $57,810, showing a 6% decrease over the last week and a 18% drop in the last 30 days.

Joana Cotar believes that halting rapid Bitcoin sales and using it as a strategic reserve currency could help Germany diversify its treasury, hedge against inflation and currency devaluation, and promote innovation.

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