Governments across the world have been moving around Bitcoin recently. Last week, CryptoQuant’s CEO, Ki Young Ju, called on Bitcoin traders to keep their cool following recent government sell-offs.
In the same week, in a series of transactions, the German government transferred a total of 1,400 Bitcoin, worth around $80 million, to an unknown wallet address.
This follows 13 other major transfers out of a government-linked Bitcoin address in the past week. Despite these recent sales, Germany still holds a significant reserve of nearly 39,800 Bitcoin, valued at roughly $2.2 billion.
On July 5, German lawmaker and Bitcoin activist Joana Cotar called on the government to cease its “hasty” Bitcoin sales and retain Bitcoin as a “strategic reserve currency” to mitigate risks in the traditional financial system.
Bitcoin, according to the lawmaker, could be a valuable asset for the country. It could diversify Germany’s treasury, protect it from inflation and currency devaluation, and even boost innovation.
The government has been actively selling Bitcoin since June 19th. As of July 4th, they’d sold a total of 7,583 coins, worth around $434.9 million. These sales involved transfers to major cryptocurrency exchanges like Coinbase, Kraken, and Bitstamp.
Cotar believes this selling spree is a mistake. They’re calling for a more comprehensive Bitcoin strategy instead. This strategy could involve holding onto Bitcoin in reserves, issuing Bitcoin bonds, or creating regulations that encourage new businesses and technologies built on Bitcoin.
The lawmaker argues that such a strategy would strengthen Germany’s economic independence and make it more resilient to external financial pressures. Interestingly, there’s even a potential buyer for Germany’s remaining Bitcoin – Tron founder Justin Sun has offered to purchase it all.
