- German MP Joana Cotar believes a strategic Bitcoin approach could combat inflation and empower citizens financially.
- Cotar advocates for using Bitcoin as a national reserve, highlighting its role in enhancing economic sovereignty.
- Despite selling Bitcoin, Cotar warns against rushing to liquidate assets, emphasizing the need for thoughtful regulations.
German parliament member Joana Cotar has made headlines with her strong endorsement of Bitcoin as a national reserve asset. In a recent statement, she emphasized that a well-structured Bitcoin strategy could transform a nation. Noting that inflation “steals money from the people every month,” Cotar emphasised the role Bitcoin could play in the midst of such financial challenges. Her request was that the European Central Bank back an inflation rate of 2%.
Bitcoin Means for Financial Independence
Cotar talked about the importance of financial freedom for individuals. She believes Bitcoin can reclaim economic sovereignty. She also stressed how Bitcoin may improve financial inclusion, especially in developing countries. These countries can now make use of hitherto unattainable economic prospects by using Bitcoin. As a result, the change brought about by Bitcoin is not merely theoretical; it has practical ramifications.
Moreover, Cotar proposed that instead of hastily liquidating its Bitcoin holdings, the German government should explore Bitcoin’s utility as a national reserve. This strategy would allow Germany to diversify its treasury assets and hedge against inflation. Additionally, she acknowledged the need to address illegal activities involving Bitcoin. However, she stressed that any regulatory measures should not hinder innovation or the financial freedom Bitcoin offers.
The Call for Education and Caution
Cotar also urged her fellow parliament members to join the “Bitcoin in the Bundestag” initiative. This program aims to educate legislators about Bitcoin’s benefits and potential use cases. By fostering a better understanding of Bitcoin, the parliament can make more informed decisions regarding digital assets.
Despite her enthusiasm for Bitcoin, Cotar has voiced strong opposition to a digital euro central bank digital currency (CBDC). She believes a CBDC presents financial and privacy risks. Furthermore, Cotar’s advocacy comes against the backdrop of Germany’s liquidation of its Bitcoin holdings. The government sold 3,846 BTC on July 12, following the offloading of tens of thousands of Bitcoins over previous weeks.
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Consequently, selling pressure from the Mt. Gox reimbursement plan may continue to suppress Bitcoin prices. Nevertheless, market analysts like Tony Sycamore are optimistic. They suggest that the potential impact of Mt. Gox payments may already be factored into Bitcoin’s current market dynamics.
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