Bitcoin’s price has been on a downtrend of late. Two key factors have specifically triggered this dip. Defunct exchange Mt. Gox has initiated repaying customers, and that has been adding weight to the sinking side of Bitcoin’s ship.
Then comes the German government which has been sending coins in batches to exchanges and other unidentified wallets.
On one hand, Tron founder and crypto entrepreneur Justin Sun has proposed to buy the government's entire stash to save the price from drowning further. On the other, German lawmaker Joana Cotar has urged the government to put an end to its hasty sells.
She pointed out that a further sell-off of additional coins would not be a sensible decision and would prove to be counter-productive.
The lawmaker, who is also a Bitcoin activist, has further asked the government to adopt BTC as its strategic reserve currency. According to her, doing so will help hedge against risks in TradFi.
Specifically, Cotar said that not only would Bitcoin help the German government diversify its treasury, but also, would shield it against currency devaluation and inflation. In tandem, it would help foster innovation in Germany, she added.
According to the translated version of her letter to the government, she said,
"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 condusive regulatory environment."
Cotar also asserted that Bitcoin holds the key to foster economic independence in Germany, and could bolster resilience to financial uncertainties.
As reported by blocmates, the German government moved around 1300 BTC worth $76 million to crypto exchanges Kraken, Coinbase, and Bitstamp on Wednesday. It additionally sent around 1700 Bitcoin to another address that is yet to be identified.
As of press time, the German government's holdings stood north of 41.2k BTC. At the valuation of $55.6k per coin, they were cumulatively worth around $2.29 billion.
