German MP and major Bitcoin advocate Joana Cotar has urged the government to halt its rapid sale of Bitcoin. She proposes adopting Bitcoin as a “strategic reserve currency” to safeguard against potential risks in the traditional financial system.

In a July 4 post, the crypto-friendly politician stated that Bitcoin (BTC) could help Germany diversify its treasury assets. She emphasized that Bitcoin acts as a hedge against inflation and currency devaluation while also promoting innovation within the country.

Cotar added that the continued sell-off would be counterproductive for the nation. She invited four German lawmakers to the “Bitcoin Strategies for Nation States” event on October 17 to highlight Bitcoin’s benefits.

According to data from the cryptocurrency intelligence platform Arkham, the German government has already sold 8,083 BTC worth approximately $462.1 million at current prices since July 19. Following these sell-offs, Germany now holds only 41,774 Bitcoin, worth $2.27 billion, across all its wallets.

Cotar emphasized the need to halt the mass selling of Bitcoin immediately, arguing that this move could bolster Germany’s economic independence and enhance resilience to external financial uncertainties.

“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 conducive regulatory environment,” Cotar said in her translated statement.

A key component of this strategy would be establishing a legal framework to foster Bitcoin-based innovation and attract top talent globally.

The German government is yet to confirm whether it plans to offload the remaining Bitcoin. The ongoing sell-off and Mt. Gox’s $9 billion compensation plan to creditors have been blamed for Bitcoin’s latest price drop. Bitcoin’s price has continued to fall, dropping below $55,000 and returning to levels last seen in February.

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