Joana Cotar, an independent member of the Bundestag, one of Germany’s legislative chambers, has called on the government to stop the ongoing sell-off of Bitcoin (BTC), which has had a remarkable impact in the BTC market, resulting in a 10% drop in the cryptocurrency’s price over the past two weeks.
Bitcoin as a Valuable Asset Class for the State Treasury
On a Letter Addressing the government, Cotar emphasized that BTC has gained recognition as a genuine asset class and a promising investment for the future due to its remarkable price rise.
The lawmaker noted that traditional financial institutions now view Bitcoin as a real asset with properties similar to “digital gold,” making it suitable for state treasuries.
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Cotar highlighted that governments around the world are re-evaluating Bitcoin to promote innovation within the ecosystem or enforce stricter regulations about Bitcoin ownership and transactions. However, she acknowledged that understanding the benefits of Bitcoin can be challenging for individuals, and the same applies to governments and politicians.
Cotar stressed that a well-designed Bitcoin strategy has the potential to reshape a country’s development, promote economic prosperity, and safeguard fundamental human freedoms for all citizens. As BTC continues to gain global acceptance, she believes more nations will consider integrating it into their financial and economic systems.
Interestingly, Cotar outlined several advantages for the German government in retaining its Bitcoin holdings rather than selling them.
BTC Strategy for Germany
First, including Bitcoin in the treasury alongside traditional fiat currencies and gold reserves diversifies a nation’s assets, reducing the risks associated with overexposure to a single asset class.
Secondly, the legislator highlighted the scarcity and deflationary nature of Bitcoin, which makes it an attractive alternative for wealth preservation. By keeping Bitcoin as part of the National treasureCotar believes the government can protect national reserves from inflation and currency devaluation beyond its control.
Furthermore, Cotar highlighted that including Bitcoin in the treasury can improve the overall performance of the portfolio, as several studies have shown that Bitcoin’s risk-adjusted returns outperform traditional investments such as stocks and bonds in the long run.
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Quote, which has long been a proponent to make Bitcoin legal tender in Germany through appropriate legislation, he further argued that developing a favorable regulatory framework for all Bitcoin-related activities could open doors for new businesses and technological progress, while also paving the way for further economic development in the country.
Cotar concluded by emphasizing that a Bitcoin-friendly legal framework will promote research and development in the financial and technology sectors, attract top talent, and foster collaboration between private companies, government institutionsand the scientific community.
Sell-off continues, putting pressure on BTC price
It is worth noting that the German government sold another batch of confiscated BTC worth over $175 million on Thursday. According to data According to the Arkham market intelligence platform, German authorities still hold 40,359 BTC worth approximately $2.3 billion.
This, coupled with the US government selling its Bitcoin holdings, caused BTC to drop to $56,700 on Thursday. However, the largest cryptocurrency, which saw a 17% price drop in the monthly period, has since recovered to its current price level of $58,300.
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