Joana Cotar, a German member of parliament and Bitcoin activist, urged the government to stop offloading its bitcoin stash. Its continued selling has affected the asset’s price, causing it to slowly lose value in June and record a massive single-day drop to below $54,000 on July 5. Bitcoin’s price was above $60,000 two days prior. The German-related wallet labeled “German Government (BKA)” moved $172 million worth of bitcoin on July 4.
Of course, other factors influenced bitcoin to drop and was not the sole consequence of the German government selling its assets. Mt. Gox commencing its repayment process to creditors on July 4 was another major reason.
Cotar voiced reasons why the government must hold its bitcoin beyond the selling, causing declining prices for the asset. She insisted that keeping bitcoin in the government reserve will ensure diversification of its reserve, offer a hedge against inflation and currency devaluation, and legitimize crypto in the country, fostering innovation within its borders.
She stated all this in an X post, calling upon three other legislators to attend the “Bitcoin Strategies for Nation States” lecture in October 2024 to understand the importance of the largest cryptocurrency.
The translated version of the post reads, “Instead of holding #Bitcoin as a strategic reserve currency, as is already being debated in the US, is being sold by our government on a grand scale. I have @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz informed about why this is not only not sensible, but counterproductive, and why this is part of our lecture event with Samson Mow (@Excellion) “Bitcoin Strategies for Nation-States” on October 17 at the Paul-Löbe-Haus.”
Germany has thus far moved less than 20% of the bitcoin it holds—it apparently seized 50,000 bitcoin from Movie2K, a piracy website. It is uncertain if the government will move its remaining holdings in their entirety, but possibly can. Tron’s Justin Sun recently stated that he would be interested in buying the entire bitcoin stash off-market to prevent bitcoin from dropping in value.
Image by Walter Knerr from Pixabay
