German MP Joana Cotar Urges Government to Stop Selling Its Bitcoin Stash

Joana Cotar, a German member of parliament and Bitcoin activist, urged the government to stop offloading its bitcoin stash.

German parliament member and Bitcoin activist Joana Cotar has urged the government to stop selling its bitcoin stash, as its continued selling has affected the asset's price.

As reported by BlockἮὖws on July 5, bitcoin slowly lost value in June and then recorded a massive single-day drop to below $54,000 on July 5. Its price was above $60,000 two days prior. A 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 it 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, which go beyond the selling causing decreasing 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.”

As BlockἮὖws reported on June 28, Germany has thus far moved less than 20% of the bitcoin it holds—it apparently seized 50,000 bitcoin from Movie2K, a piracy website, in 2013. It is unclear if the government will move its remaining holdings in their entirety, but it is possible that they could. 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.

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