A recent development occurred in the career of Joana Cotar, a member of the German Bundestag, where she has disapproved of the government’s measure to sell a significant part of its Bitcoin holdings. Cotar, on the other hand, took to social media to express her fears on Thursday, thus saying that it would be more like an “illogical” and “counteractive” action.
Joana Cotar’s Perspective on Bitcoin
Cotar, the one who was in favor of according Bitcoin the status of lawful substitute to the Euro in the German country, shared her opinion with the public that the stronger position of the country will be achieved in case Bitcoin will be used together with sovereign systems. She stated that instead of undergoing a massive Bitcoin sell-off, the government needs to think through a broad Bitcoin strategy. This strategy, which would be taught by Cotar herself, could contain reserves of Bitcoin in the treasury, bonds which can be bought with Bitcoin as a reserve currency, and a liberal regulatory system to cryptocurrency.
The Government’s Decision: A Critique
Cotar’s disapproval also extends to the potential severe consequences of the sale. She wrote to various senior government officials, including Michael Kretschmer, a member of the Christian Democratic Union (CDU), Christian Lindner, the Federal Minister of Finance, and Chancellor Olaf Scholz. In her letters, Cotar requested these leaders to avoid rushing the disposal of Bitcoin and hence, presented the some of the benefits of holding Bitcoin.
“Today I am writing to ask you not to rush the sale of Bitcoin in state ownership” said her letter. “Avoid selling and rather than doing that, it is the development of a comprehensive Bitcoin strategy that should be promoted.”
The Strategic Value of Holding Bitcoin
Apart from the discussion of motives given by Cotar holding Bitcoin could be a strategic move for Germany may be through its deflationary property. She stated that Bitcoin deflationary money that gives good protection against inflation and currency devaluation. On the other hand, holding Bitcoin would provide a natural safeguard against the risks linked to the excessive reliance on these old finance entities. Consequent to that, it would bring about a change in the business model toward treasury diversification. Cotar also asserted that Bitcoin could be a source of innovation, it could offer the opportunity to technologically advance and thus help Germany not to lose its economic sovereignty.
Germany’s Continued Bitcoin Sell-Off
The comments of Cotar come in the wake of the swift action by the government shifting another substantial Bitcoin unit. On July 1, Germany transacted a further 1,300 bitcoins scatter wide among several exchanges such as Coinbase, Kraken, and Bitstamp. The 1,700 BTC which were on the external address are $98.76 million, as stated by the Mempool.space website, which was transferred to the external address. The selling activity including the BTC has caused much concern and contributed to the slump in prices.
The selling of large amounts of Bitcoin is followed by a rampant frenzy of discussions in the crypto community and this has led them to a state where they are pessimistic about the Bitcoin market. At the time of reporting, the market price of Bitcoin has dropped by 4.28% on the last day and is now standing at $54, 168.
Conclusion
Joana Cotar’s irate criticisms of the government’s crypto reticence stand as the main arenas of discussion on the path that Germany should take while managing the cryptocurrencies. In the article, she states that a strategic hold of Bitcoin would not only be of help but would also be a vehicle that changes the landscape of finance and banking in the world. With the power that the administration has, it still remains uncertain whether or not Joana’s points will lead to the reassessment of their stances regarding Bitcoin.
