- The German government has sold 7,583 Bitcoin since June 19, leaving 42,274
- Joana Cotar believes that the massive outflow of Bitcoin should be stopped
- It is better to keep Bitcoin in the state treasury, issue Bitcoin bonds, and create a conducive regulatory environment
We recently heard Donald Trump say that Bitcoin is a strategically valuable asset that should be consolidated in the US. Otherwise, he believes that Russia and China will take over the strategic initiative in the global economy. You can learn the details in our recent article.
However, Trump did not mention Germany, where we hear a similar opinion from Member of Parliament, Joana Cotar. She says that selling Bitcoin from German reserves is senseless and unproductive.
What Is the Issue About Selling BTC?
Germany has been highly active in crypto for some time now, selling large amounts of Bitcoin from its reserves.
The German government has sold 7,583 Bitcoin since June 19, leaving 42,274.
Joana Cotar believes that the massive outflow of Bitcoin should be stopped and considered an important reserve for the stability and prosperity of the German economy and protection against fiat currency volatility and inflation.
“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.”
said Joana Cotar
Will We See a Shift From Governments Towards Hoarding BTC?
It’s hard to say how loud Joana Cotar’s voice will be on this issue.
On the one hand, the Bitcoin price has fallen significantly at the moment, to ~$54,937, and we can’t know what the final decision will be. Maybe Germany will decide that it is not a good deal right now and wait for the price to rise to sell later.
Or maybe, they will be afraid of an even bigger price drop and lost potential profits, and will start selling BTC more actively. Especially if they actually believe that Bitcoin will collapse completely sooner or later.
On the other hand, Germany may join those countries that are actively buying Bitcoin, convinced that its true potential and value are far from being realized. For example, we can probably see this is exactly what China is doing, which Trump actively refers to in his statements.
At least it looks like Germany is not yet making moves similar to a Bitcoin long-term accumulation strategy, and maybe such an explicit initiative from Joana Cotar will be a start.
We will be following this trend closely, as with all these ups and downs, we are experiencing the amazing thing – how something started by crypto enthusiasts is affecting the economy and politics of the world’s leading powers.
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