Joana Cotar, a proponent of Bitcoin, has advised the German government to cease its quick Bitcoin sales and instead utilize it as a 'strategic reserve currency' for financial security. In a communication addressed to German government officials on July 4, Cotar cautioned against the hurried disposal of state-owned Bitcoin. She posits that Germany could benefit from diversifying its treasury assets, safeguarding against inflation and currency devaluation, and fostering innovation by retaining Bitcoin. Cotar rebuked the ongoing Bitcoin sell-offs as 'counterproductive' and extended an invitation to four German politicians to partake in the 'Bitcoin Strategies for Nation States' conference in October to explore potential advantages.
Since June 19, the German government has liquidated 7,583 Bitcoin, valued at $434.9 million based on current market rates, as reported by the cryptocurrency intelligence platform Arkham. The most recent transaction on July 4 involved the transfer of $172 million worth of Bitcoin to exchanges such as Coinbase, Kraken, and Bitstamp. Presently, Germany possesses 42,274 Bitcoin, valued at $2.4 billion. Cotar emphasized that discontinuing the mass sell-off could fortify Germany's economic sovereignty and resilience. She recommended devising an extensive Bitcoin strategy encompassing retaining Bitcoin in the national treasury, issuing Bitcoin bonds, and establishing a conducive regulatory framework. This strategic approach could attract top talent and stimulate innovation in the domain of Bitcoin.
Notwithstanding, the German government has not confirmed if it intends to persist with the Bitcoin sales. Justin Sun, the founder of Tron, has expressed interest in acquiring Germany's Bitcoin holdings valued at $2.3 billion to mitigate any adverse market repercussions. The recent sell-off of Bitcoin by Germany and Mt. Gox's $9 billion reimbursement plan to creditors have been associated with the recent decline in Bitcoin's value. Currently, Bitcoin is trading at $57,810, marking a 6% decrease over the past week and an 18% decline over the preceding month. Joana Cotar advocates that ceasing rapid Bitcoin sales and utilizing it as a strategic reserve currency could diversify Germany's treasury holdings, safeguard against inflation and currency devaluation, and foster innovation.
