German MP Joana Cotar said the mass Bitcoin sell-off isn’t “sensible” and “productive” as it could be used to diversify treasury assets and protect against currency devaluation.
German lawmaker and Bitcoin activist Joana Cotar has urged the government to stop its “hasty” Bitcoin selling spree and instead adopt it as a “strategic reserve currency” to shield against risks in the traditional system.
“urge you to refrain from a hasty disposal of state-owned Bitcoin,” the Bitcoin-friendly politician wrote to members of Germany’s government on July 4.
Cotar said Bitcoin could help Germany diversify its treasury assets, serve as a hedge against inflation and currency devaluation and promote innovation in the country.
A further sell-off is not “sensible” and is “counterproductive” for the country, said Cotar, who also used the letter to invite four German politicians to the “Bitcoin Strategies for Nation States” event in October to potentially orange-pill her peers.
The German government has now sold 7,583 Bitcoin — worth $434.9 million at current prices — since June 19, according to cryptocurrency intelligence platform Arkham.
The latest sell-off saw $172 million worth of transfers to cryptocurrency exchanges Coinbase, Kraken and Bitstamp on July 4.
Germany now only holds 42,274 Bitcoin, worth $2.4 billion, across all its wallets.
Cotar wants the mass selling to stop now, stressing that Bitcoin could strengthen the country’s economic independence and increase its resilience to external financial uncertainties.
“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,” Cotar said in the translated statement.
Part of that Bitcoin strategy would involve establishing a legal framework to promote Bitcoin-based innovation and attracting top talent from around the world.
The German government hasn’t confirmed whether it intends on selling the rest of its Bitcoin.
Germany already has a keen buyer though, with Tron founder Justin Sun recently offering to buy the country’s $2.3 worth of Bitcoin to minimize impact on the market.
However, Germany’s continued Bitcoin sell-off and Mt. Gox’s $9 billion reimbursement plan to creditors have been credited to Bitcoin’s recent price slump.
Bitcoin is currently trading at $54,510, down 8% over the last week and 21% over the last month.
