Joana Cotar, a member of the Bundestag, has expressed her disapproval of the German government’s move to divest many Bitcoins (BTC). The government has swapped about $195 million in Bitcoin to exchange platforms such as Coinbase, Kraken, and Bitstamp. It has created volatility in the market, especially for Bitcoin prices.
German Government Sells Off Large Bitcoin Cache
The government of Germany recently dumped a large amount of coins, which has created much debate on the effects of this on the future of cryptocurrencies. These Bitcoins were confiscated from the alleged criminals during the operation against Movie2k, a site that offers pirated movies. The government is selling assets from a pool that was once 50,000 BTC, and critics say this may harm the value of digital currency. Furthermore, the constant disposal of these assets has created discussions on effectively managing the nation’s digital assets.
These sales also impact the financial sector. Bitcoin’s value has also significantly dropped; it trades at $54,378, an 18% drop from a month ago. The sales are accompanied by other market factors, such as the Mt. Gox $9 billion reimbursement plan, which affects Bitcoin’s market value in one way or another.
Cotar Urges Reconsideration of Bitcoin Sales Strategy
However, These strategies are criticized by Cotar, who compares the approach to the German one with other international discussions like those in the US, where Bitcoin is considered a strategic reserve currency. She also conveyed her concerns to some of the critical government officials of Saxony, such as Minister President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz. Cotar has called to reconsider the existing liquidation approach, which he has accused of being counterproductive.
Statt #Bitcoin als strategische Reservewährung zu halten, wie es in den USA bereits debattiert wird, verkauft unsere Regierung im großen Stil. Ich habe @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz darüber informiert, warum dies nicht nur nicht sinnvoll, sondern… pic.twitter.com/v9FpzmfLbp
— Joana Cotar (@JoanaCotar) July 4, 2024
She also invited these officials to a lecture on October 17, 2013, entitled “Bitcoin Strategies for Nation States.” Samson Mow, the CEO of JAN3 and a famous Bitcoin strategist, will speak about the opportunities that come with adapting a nation’s financial policy to accommodate Bitcoin. The following discussion seeks to explain the potential ways Bitcoin can contribute to improving national economies.
Furthermore, the conversation will cover governments’ issuance of Bitcoin-backed bonds. It helps attract new investors, provides steady funds for different infrastructural developments, and boosts the economy.
Justin Sun Offers to Buy Germany’s Bitcoin
This event resembles El Salvador’s making Bitcoin legal tender in 2021. Mow also has advisory positions with governments such as El Salvador and Mexico, which makes his recommendations credible. Such conversations are crucial as they focus on the possibility of economic change with the help of Bitcoin and other cryptocurrencies.
Furthermore, the strategic application of Bitcoin as a global asset is becoming increasingly noticeable as more countries and states evaluate it within the framework of their economic policies. The German government, nevertheless, has not disclosed plans for the other Bitcoins. It increases the market’s vulnerability to future sales opportunities, a risk factor.
In this regard, the founder of the Tron network, Justin Sun, has stated his desire to acquire the remaining Bitcoin of Germany, worth about $2.3 Billion. His proposal is intended to reduce the impact of significant sales, which may force the market into liquidation. This proposal points towards the increasing attention paid to Bitcoin and its perceived worth as a critical economic commodity.
Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
