German MP Strongly Opposes Government’s Bitcoin Sale Amid Market Uncertainty

In a scathing critique of the recent Bitcoin management strategy of the German government, Joana Cotar, a member of parliament has openly expressed her disapproval of the plan to sell off its BTC holdings during a volatile time in the market. 

Cotar, a well-known supporter of innovation and digital assets in the Bundestag, contended that this action not only comes at a bad time but also calls into question the long-term advantages of holding onto digital assets like Bitcoin.

Cotar Urges German Government To Rethink Bitcoin Sell-Off

On Thursday, the German parliament member Joana Cotar taking to the X (formerly Twitter) platform highlighted that the government liquidating Bitcoin holdings during a period of market uncertainty is not a strategic move. She criticized the approach saying that rather than retaining it as a tactical reserve currency, as is currently being discussed in the United States, the government is selling its BTC holding on a large scale.

Cotar displeased by the constant sell-off in recent weeks, further sent out letters to President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz, informing them why this is not only unreasonable but also ineffective.

The letter read:

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 underscored several key areas Bitcoin could enhance the country’s economy while urging the government to avoid the rapid sale of the crypto asset. These include Diversification of the treasury, long-term store of value, promoting innovation, economic sovereignty, and technological advancement

The parliament member further went on to invite these political figures to the upcoming “Bitcoin Strategies for the Nation States” event with Samson Mow scheduled on October, 17, in order to better understand the crypto asset’s potential.

Cotar’s position underlines the continuing discussion in German politics regarding the role of cryptocurrencies in the country’s financial policy. Her remarks also point to the widening gap between proponents of more innovative, forward-thinking financial regulations and others who support more careful, conservative approaches to digital assets.

More Sell-Off From The Government?

Despite the cautionary statement from Joana Cortar, the German government is still selling more BTC from its holdings as reported by the intelligence platform, Arkham. According to Arkham, the government has sold thousands of BTC in the last 2 weeks.

Recent data shows that the German authority carried out another sale of BTC about 4 hours ago to the wallet address 139PoPE1…7f3VH7ybVu. Approximately 500 BTC valued at a whopping $27 million was seen being 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 a few minutes after the authorities moved about 1,300 BTC to Coinbase, Bitstamp, and Kraken. Although the government has consistently carried out massive sell-offs, its holdings still boast over 41,000 BTC valued at $2.27 billion.

Featured image from Adobe Stock, chart from Tradingview.com