Is Germany Ready For A Bitcoin Reserve? Lawmaker Cotar Pushes For Strategic Plan

Joana Cotar, a member of the German Bundestag and a longtime advocate of Bitcoin (BTC) adoption, is pushing back against the government’s recent decision to sell its BTC holdings. 

Having witnessed the sale of approximately 50,000 confiscated Bitcoin earlier this year, Cotar is now championing the idea of establishing a strategic Bitcoin reserve for Germany.

BTC As A Political Force In Europe?

In a recent interview with Bitcoin Magazine, Cotar expressed her belief that BTC could become a significant political force in Europe. She is dedicated to fostering understanding among her fellow lawmakers about the potential benefits of adopting Bitcoin. 

To this end, Cotar has initiated educational efforts, including the creation of a dedicated website, a newsletter, and parliamentary events featuring experts in the cryptocurrency field. 

Cotar noted that these initiatives have garnered interest from other parliament members, indicating a growing curiosity about how BTC could enhance Germany’s financial system.

When discussing the main barriers to BTC adoption within European governments, Cotar highlighted a prevailing sense of fear. She explained that there is often a cautious approach toward new ideas and technologies, with governments prioritizing regulatory concerns and perceived risks over opportunities for innovation. 

During the interview, Cotar also referred to BTC as the “freedom currency” and a “tool for liberation,” emphasizing its significance in an era where many people face oppression in authoritarian regimes. She believes that BTC offers individuals a means to express their opinions and assert their freedoms in ways that traditional financial systems may not allow.

Cotar Proposes Bitcoin As A Federal Reserve Asset 

Reflecting on the German government’s decision to sell its BTC holdings, Cotar characterized it as a critical misstep. She previously communicated her concerns to the Minister of Finance and the Chancellor, advocating for a cohesive Bitcoin strategy rather than the liquidation of assets. 

“Germany needs a Bitcoin strategy,” Cotar asserted, stressing that legislation should be amended to allow for the retention of confiscated BTC as a national reserve rather than selling it off.

While acknowledging the potential for BTC to be implemented as legal tender—similar to El Salvador—Cotar recognized that such a move is unlikely to happen in Germany in the near term. 

Instead, the lawmaker proposed alternative strategies for BTC adoption, such as designating it as a federal reserve asset and utilizing it as a store of value to combat inflation. She also mentioned the possibility of mining Bitcoin as another avenue for integration into Germany’s economy.

At the time of writing, BTC has managed to regain the $93,120 level, after briefly retreating to the $91,000 level on Tuesday, posting losses of nearly 7% in the past week alone. 

Featured image from DALL-E, chart from TradingView.com