In a surprise move, Johanna Cottar, an independent member of the German parliament, has called on the country’s government to halt its ongoing sale of Bitcoin (BTC) holdings. Cottar’s emotional call comes amid a massive sell-off in the cryptocurrency market, which has seen the price of Bitcoin fall by 10% over the past two weeks. As German authorities continue to offload their vast Bitcoin holdings, Cottar has emerged as an outspoken advocate, urging policymakers to reconsider their strategy and recognize Bitcoin’s potential as a strategic asset for the state treasury.
Cotar’s message to the government underscores the growing recognition of Bitcoin as a real asset class and a promising investment for the future. The lawmaker highlights how traditional financial institutions now view Bitcoin as a real asset, akin to “digital gold,” making it a suitable candidate for inclusion in the state’s financial portfolio.
Cottar notes that governments around the world are reassessing their stance on bitcoin, either seeking to foster innovation within the ecosystem or implementing stricter rules on bitcoin ownership and transactions. However, she acknowledges that understanding bitcoin’s benefits can be a challenge for both individuals and governments, a sentiment that resonates with the ongoing debate over the role of cryptocurrency in the global financial landscape.
A long-time advocate of making bitcoin legal tender in Germany, Kotar believes that developing a regulatory framework that is conducive to all bitcoin-related activities could open the door to new businesses and technological advancements, paving the way for further economic development in the country.
Despite Kotar’s impassioned pleas, the German government has continued to sell its confiscated bitcoin holdings. In a recent move, authorities disposed of more than $175 million worth of bitcoin, adding to the market’s volatility.
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Impact on Bitcoin Prices
This massive sell-off, coupled with the US government liquidating Bitcoin, contributed to a significant drop in the cryptocurrency’s price, with Bitcoin falling to $56,700 on Thursday. However, the market has since recovered, with Bitcoin currently trading at around $58,300.
Potential impacts on the cryptocurrency market
The massive liquidations by governments have raised concerns among analysts, who have warned that the influx of Bitcoin into the market could put continued downward pressure on the cryptocurrency’s value and overall market stability. As the Mt. Gox creditor deadline approaches, those concerns have grown, with the potential for more volatility in the crypto space.
As the global financial landscape continues to evolve, the debate over Bitcoin’s role in national economic strategies is likely to intensify. Cotard’s call for the German government to reconsider its stance on Bitcoin represents a critical turning point in this ongoing debate, one that could have far-reaching implications for the future of finance and the global economic system.