German lawmaker urges government to stop rushed Bitcoin sell-off

Politician and Bitcoin advocate Joana Cotar has urged the German government to stop its “hasty” Bitcoin sell-off. The minister’s comments came as Bitcoin prices have dropped significantly.

According to Cotar, Bitcoin could help diversify the nation’s treasury and serve as a shield against inflation. It could promote innovation while also slowing down currency devaluation.

German government dumps Bitcoin

At the time of publication, Arkham Intelligence noted that since June 19, the German government had sold approximately 7,583 Bitcoins valued at $434.9 million based on current prices.

A huge chunk of Bitcoin was confiscated by the government as a part of its crackdown on the illegal movie streaming site Movie2k.to. Approximately 50,000 Bitcoin, valued at $3  billion at the time, was seized at the time.

The recent off-loading has brought Gernmany’s Bitcoin stats down to 42,274 Bitcoin, worth $2.4 billion, across all its wallets. $172 million worth of cryptocurrencies were dumped across multiple exchanges as a part of the latest sell-off on July 4.

In a July 4 letter, the minister asserted that continued sell-off is not “sensible,” adding that it is “counterproductive” for the nation. She urged regulators to consider a “comprehensive Bitcoin strategy” instead of “divesting.”

A bitcoin strategy as an alternative

The minister advised holding Bitcoin the the state treasury, “issuing bonds,” or “creating a conducive regulatory environment,” as alternatives to the current mass sell-off strategy.

A part of the strategy would also involve promoting Bitcoin-focused innovations and attempting to draw in top talent from across the globe.

Cotar also used the letter to invite four German politicians, including Saxony’s Minister, President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz, to the “Bitcoin Strategies for Nation States.” 

The event slated to be held in October this year will focus on how nation-states can adopt and utilize Bitcoin strategically. It would feature prominent names like Samson Mow, CEO of JAN3.

As of now, the German government hasn’t publicised any plans for selling off the remainder of its Bitcoin stash.

In the meantime, cryptocurrency entrepreneur and Tron founder Justin Sun has stepped up to mitigate the impact of Germany’s selling spree. On July 4, Sun said he was willing to “negotiate” with the German government to buy its Bitcoin holdings “off-market.”

Bitcoin prices dropped below $55,000 on July 5. This drop marked its first foray into this region since February.

With the Bitcoin prices tanking, the effects have also precipitated onto the altcoin market, with tokens like Pepe, Mantra, and Tron witnessing a massive drop.

Experts at Invezz believe one of the key reasons for the Bitcoin drop is the fact that the U.S. presidential candidate, Donald Trump, risks losing the 2024 elections if President Joe Biden is replaced by a younger candidate.