In a scathing critique of the German government’s recent Bitcoin management strategy, Member of Parliament Joana Cotar openly Express his disapproval of the plan to sell his BTC holdings during a volatile period in the market.
Cotar, a well-known advocate for innovation and digital assets in the Bundestag, argued that the move not only comes at a bad time, but also calls into question the long-term benefits of holding digital assets such as Bitcoin.
Cotar urges German government to reconsider Bitcoin sales
On Thursday, German MP Joana Cotar, speaking on the X platform (formerly Twitter), stressed that the government’s liquidation of Bitcoin holdings during a period of market uncertainty was not a strategic decision. She criticized this approach, saying that rather than keeping it as a tactical reserve currency, as is currently being discussed in the United States, the government is selling its Bitcoin taking place on a large scale.
Cotar, unhappy with the constant sales of recent weeks, has sent letters to President Michael Kretschmer, Finance Minister Christian Lindner and Chancellor Olaf Scholz, explaining why this practice is not only unreasonable but also ineffective.
The letter said:
Instead of selling, I recommend developing a comprehensive Bitcoin strategy. This could include keeping Bitcoin in the Treasury, issuing Bitcoin bonds, or creating a conducive regulatory environment.
In the letter, Cotar highlighted several key areas where Bitcoin could improve the country’s economy while urging the government to avoid a rapid sell-off of the crypto asset. These include treasury diversification, long-term store of value, fostering innovation, economic sovereignty, and technological progress.
The MP then invited these political figures to the upcoming event “Bitcoin Strategies for Nation States” with Samson Mow scheduled for October 17, to better understand the potential of the crypto asset.
Cotar’s position underscores the ongoing debate within German politics regarding the role of cryptocurrencies in the country’s financial policy. His remarks also highlight the growing divide between advocates of more innovative and forward-thinking financial regulation and those who support more cautious and conservative financial regulation. digital asset approaches.
More sales from the government?
Despite Joana Cortar’s warning, the German government is still sell more BTC of its assets, as reported by intelligence platform Arkham. According to Arkham, the government has sold thousands of BTC in the past two weeks.
Recent data shows that German authorities conducted another BTC sale about 4 hours ago to wallet address 139PoPE1…7f3VH7ybVu. About 500 BTC worth $27 million was sent to the wallet address.
It is worth noting that the aforementioned address also received a substantial transfer of 1,700 BTC worth $99 million from the German government on Thursday. This transaction comes just minutes after authorities transferred around 1,300 BTC to Coinbase, Bitstamp, and Kraken. Although the government has regularly conducted massive sales, its holdings still number over 41,000 BTC, valued at $2.27 billion.
Featured image from Adobe Stock, chart from Tradingview.com
