German Parliamentary Criticize Government's Bitcoin Selling Strategy

Bittime - Joana Cotar , a member of the German Bundestag, recently voiced strong opposition to the government’s decision to sell a large amount of Bitcoin. Cotar, who is known as a vocal Bitcoin supporter, criticized the move as “nonsensical” and “counterproductive.”

Last year, Cotar supported the idea of ​​recognizing Bitcoin as legal tender in Germany. He argued on social media that Bitcoin should be held as a strategic reserve rather than sold in large amounts. According to Cotar, maintaining a Bitcoin reserve could offer greater benefits to Germany's financial strategy.

German Government Urges to Stop Bitcoin Sales

In response to the Bitcoin sell-off, Cotar has sent letters to prominent political figures, including Michael Kretschmer of the Christian Democratic Union (CDU), Federal Finance Minister Christian Lindner, and Chancellor Olaf Scholz. In the letters, he urged the government to reconsider its approach and avoid a hasty liquidation of Bitcoin holdings.

“I am writing to you today to urge you to avoid a hasty sale of state-owned Bitcoin,” Cotar’s German translation of the letter reads. He recommends that the government develop a comprehensive Bitcoin strategy, which could involve holding Bitcoin in state coffers, issuing Bitcoin bonds, or creating a favorable regulatory environment for cryptocurrencies.

Arguments Against Mass Selling

Cotar outlined several arguments against a massive Bitcoin sell-off. He stressed that Bitcoin could play a significant role in diversifying state coffers, reducing the risks associated with over-reliance on traditional asset classes. He further highlighted Bitcoin’s deflationary nature, which could act as a hedge against inflation and currency devaluation.

According to Cotar, holding Bitcoin can also encourage innovation, advance technological progress, and strengthen Germany's economic sovereignty. These points underline his belief that a strategic approach to Bitcoin can yield long-term benefits for the country.

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Ongoing Bitcoin Sale by German Government

Despite Cotar’s objections, the German government continued with its Bitcoin sales. On July 4, another 1,300 Bitcoins were transferred to exchanges including Coinbase, Kraken, and Bitstamp. Additionally, 1,700 Bitcoins, worth about $98.76 million, were moved to external addresses, as reported by Mempool.space.

The transaction has sparked speculation and concerns in the crypto community, contributing to a drop in Bitcoin's market price. According to the latest report, Bitcoin is valued at $54,168, marking a 4.28% drop in the last 24 hours.

Joana Cotar’s criticism reflects a broader debate about how governments should handle crypto assets, balancing immediate financial gains with potential long-term strategic advantages.

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