Highlights:
- German lawmaker Cotar criticizes government’s massive Bitcoin sell-offs
- Cotar proposes Bitcoin bonds and retention as a reserve currency to stabilize the economy
- Mt. Gox’s continued Bitcoin disposals exacerbate market volatility, driving prices down
Recent large-scale Bitcoin sales by the German government have sparked criticism across the cryptocurrency community. Joana Cotar, a member of the German Bundestag and an advocate for Bitcoin, has publicly criticized these moves as “not sensible” and “counterproductive,” expressing concerns over the implications of such large-scale disposals.
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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
German Government’s Bitcoin Sales Stir Market Concerns
In communications with officials like Chancellor Scholz and Minister Lindner, Cotar urged stopping the rapid sale of Bitcoin. She advocates a more strategic approach to managing the nation’s Bitcoin assets. She proposes holding Bitcoin as a reserve currency and issuing Bitcoin bonds. Her plan also includes refining regulations to enhance innovation and economic sovereignty.
The German government reportedly transferred another batch of 1,300 Bitcoins to exchanges like Coinbase, Kraken, and Bitstamp on July 4. Following this, an additional 1,700 BTC were moved to external addresses. These frequent transactions have stirred speculation and concern within the crypto community, contributing to a slump in Bitcoin’s market price, which recently saw a 4.28% drop.
According to blockchain analytics firm Arkham Intelligence, significant amounts of Bitcoin have been sent to various exchanges, contributing nearly $76 million to the liquidated amount. This mass offloading event negatively impacts Bitcoin’s market value, as shown by a price drop below $58,000 following the transactions.
Cotar Advocates Bitcoin for Germany’s Economic Growth
Beyond her immediate criticisms, Cotar envisions a broader role for Bitcoin in diversifying Germany’s financial assets and protecting against inflation and currency devaluation. She emphasizes that Bitcoin’s qualities can enhance economic stability and drive innovation in the country.
To further discuss her views and strategies, Cotar has invited government officials and the public to an upcoming lecture featuring Bitcoin evangelist Samson Mow on October 17. The event will explore the potential economic benefits of Bitcoin-backed government bonds, aiming to attract investors and fund critical infrastructure projects. Mow’s previous advisory roles with governments such as El Salvador and Mexico add a layer of authoritative insight into the discussion.
The lecture will compare this to El Salvador’s Bitcoin legalization, showing its transformative potential for national economies. The discussion will also explore integrating Bitcoin into government financial strategies to stimulate economic growth and innovation.
Bitcoin Dips as Mt. Gox and Germany Sales Stir Market
Bitcoin’s value has dropped to $55,000 amid major sell-offs by both Mt. Gox and the German government. The defunct Japanese exchange, Mt. Gox, recently moved 47,229 BTC, valued at $2.7 billion, to an unknown wallet, intensifying worries about falling crypto prices.
The continuous distribution of assets from Mt. Gox’s bankruptcy estate has contributed to market fluctuations. As significant Bitcoin amounts are disbursed, creditors sell their shares, pushing prices down and fueling a market downturn.
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