German Lawmaker Urges Government to Pause Bitcoin Sell-Offs
Germany’s government has been transferring large amounts of Bitcoin in recent weeks, following the national police’s seizure of 50,000 Bitcoins (BTC) in January. However, a German lawmaker and Bitcoin advocate, Joana Cotar, has urged the government to pause the rush to sell Bitcoin and instead consider holding some of the coins in the national reserve.
Government Moves Large Amounts of Bitcoin
The German government has transferred nearly 10,000 BTC worth approximately USD $550 million, according to data from Arkham Intelligence. Much of those coins have been transferred to cryptocurrency exchanges, likely in selling actions.
Bitcoin Price Volatility
The price activity of Bitcoin has been volatile since trading began, although it is not the only factor that has been putting downward pressure on prices. The cryptocurrency’s price fell back below $54,000 momentarily on Friday amid moves by the German government, the start of the distribution of refunds of Mt. Gox, and economic data in the United States.
Cotar’s Proposal
Cotar has proposed that Germany incorporate part of the Bitcoins into its national reserve, arguing that Bitcoin offers the opportunity to diversify the assets of the state reserve, reducing the risk associated with traditional investments. She also suggested that due to the cryptocurrency’s programmed scarcity and deflationary nature, it could serve as a hedge against inflation and that a clear legal framework could contribute to both Germany’s economic sovereignty and the technological and financial development of European countries.
Government’s Response
Cotar’s comments came after the German government made another big move on Bitcoin. On Thursday morning, the BKA’s wallet address moved a total of 3,000 BTC to various addresses, of which 1,300 BTC ended up on cryptocurrency exchanges.
Warning
This is an informative article. Investing in cryptoassets is not regulated in some countries and may not be appropriate for retail investors, as the total amount invested could be lost. Check the laws of your country before investing.
