German MP Calls for Halt on Bitcoin Sales, Advocates for Strategic Reserve

German Member of Parliament Joana Cotar, a staunch advocate for Bitcoin, has called on the government to cease its rapid Bitcoin sales. She proposes adopting Bitcoin as a “strategic reserve currency” to protect against risks in the traditional financial system.

In a July 4 post on X, Cotar argued that Bitcoin (BTC) could help Germany diversify its treasury assets. She highlighted that Bitcoin acts as a hedge against inflation and currency devaluation while fostering innovation within the country. “Instead of divesting, I recommend developing a comprehensive Bitcoin strategy. This could include keeping Bitcoin in the state treasury, issuing Bitcoin bonds, or creating a conducive regulatory environment,” Cotar stated.

She further emphasized that the ongoing sell-off is counterproductive. To persuade her colleagues, Cotar invited four German lawmakers to the “Bitcoin Strategies for Nation States” event on October 17.

Current Bitcoin Holdings and Market Impact

According to data from cryptocurrency intelligence platform Arkham, the German government has sold 8,083 BTC worth approximately $462.1 million since July 19. After these transactions, Germany holds 41,774 Bitcoin, valued at about $2.27 billion.

Cotar stressed the importance of stopping the mass Bitcoin sales immediately. She believes this move could strengthen Germany’s economic independence and enhance resilience to external financial uncertainties. A crucial part of her strategy involves creating a legal framework to promote Bitcoin-based innovation and attract global talent.

The German Federal Criminal Police Office (BKA) initially seized about 50,000 BTC from the operators of the piracy movie website Movie2k.to in 2013. The BKA acquired the Bitcoin in mid-January following a “voluntary transfer” from the suspects. The government has not yet confirmed if it plans to sell the remaining Bitcoin.

Meanwhile, Tron founder Justin Sun recently proposed to buy Germany’s $2.3 billion worth of Bitcoin to minimize market disruption. Despite this offer, Germany’s continued Bitcoin sell-off and Mt. Gox’s $9 billion compensation plan to creditors have contributed to Bitcoin’s recent price drop. The cryptocurrency’s value has fallen below $55,000, reaching levels last seen in February.

Claims that Mt. Gox transferred around 47,000 BTC (worth about $2.6 billion) to a new wallet before its $9 billion payout have further accelerated the sell-offs. Cotar’s call to action highlights the potential long-term benefits of treating Bitcoin as a strategic asset, rather than a commodity to be liquidated, for enhancing Germany’s economic strategy.