German Lawmaker Urges Government to Adopt Bitcoin as Strategic Reserve Currency
German lawmaker and Bitcoin activist Joana Cotar is making headlines with her plea to the government to halt its rapid Bitcoin selling spree and instead embrace the leading cryptocurrency as a “strategic reserve currency.” In a letter to members of Germany’s government, Cotar emphasized the potential benefits of holding Bitcoin in the country’s treasury, including diversification of assets, protection against inflation, and fostering innovation.
Cotar’s call comes as the German government has already sold 7,583 Bitcoin, valued at $434.9 million, since June 19. The most recent sell-off on July 4 saw $172 million worth of Bitcoin transferred to exchanges Coinbase, Kraken, and Bitstamp. Despite the sales, Germany still holds 42,274 Bitcoin, worth $2.4 billion, in its wallets.
The lawmaker argues that continuing to sell off Bitcoin is not in the country’s best interest and could undermine its economic independence and resilience to financial uncertainties. Instead, Cotar recommends developing a comprehensive Bitcoin strategy, which could involve keeping Bitcoin in the state treasury, issuing Bitcoin bonds, or creating a favorable regulatory environment to attract talent and promote innovation.
While the German government has not confirmed its plans for the remaining Bitcoin holdings, Tron founder Justin Sun has expressed interest in purchasing the assets to minimize market impact. The ongoing sell-off by Germany, along with Mt. Gox’s $9 billion reimbursement plan to creditors, has been cited as contributing factors to Bitcoin’s recent price decline.
Despite the market challenges, Bitcoin is currently trading at $57,810, down 6% over the last week and 18% over the last month. Cotar’s advocacy for a strategic approach to Bitcoin ownership highlights the growing interest and debate surrounding the role of cryptocurrencies in national economic strategies.
