German National Assembly member Joanna Cotard has strongly criticized the government’s sale of Bitcoin (BTC), arguing that the government should hold Bitcoin as a hedge against inflation and currency depreciation.
The German government has frequently traded Bitcoin in recent weeks and has moved it to exchanges several times. Notably, on Thursday, the German government sold 1,300 Bitcoins on a major cryptocurrency exchange.
According to blockchain analysis firm Arkham Intelligence, 500 bitcoins (about $29.05 million) went to Bitstamp and 400 bitcoins (about $23.24 million) went to Coinbase, with a total sale of about $76 million. This caused the price of bitcoin to fall and raised concerns about further declines.
Cotard criticized the government's bitcoin sales as "counterproductive" and called for an end to the sales. She conveyed this position to Michael Kretschmer, deputy chairman of the Christian Democratic Union (CDU), Federal Finance Minister Christian Lindner and German Chancellor Olaf Scholz. Cotard firmly believes that Bitcoin provides investors with a "unique opportunity" to diversify their assets.
Cotard said Bitcoin has the potential to reduce risk compared to traditional assets and recommended attending a lecture on October 17. Bitcoin evangelist Samson Mow will attend the lecture. Cotard believes that Bitcoin can be used as a hedge against inflation and currency depreciation due to its scarcity, which is consistent with the position of the cryptocurrency community.
Justin Sun, founder of the Tron network, proposed to stop large-scale Bitcoin sales by negotiating with the German government. He said on the X platform on the 4th (local time), "I am willing to negotiate with the German government to buy all Bitcoin to minimize the impact on the market."
Germany’s Federal Office of Criminal Investigation began selling some of its confiscated Bitcoin in May. So far, the government has sold 9,641 Bitcoins, or more than $550 million worth of Bitcoin, in small batches to cryptocurrency exchanges.
Although the German government’s Bitcoin holdings are a small percentage of the total circulating supply, such sales have caused market volatility. German police transferred 1,300 Bitcoins to Kraken, Coinbase and Bitstamp this morning, causing Bitcoin prices to fall sharply.
It is not clear whether the German government will accept Sun's proposal. The government plans to sell more than 40,000 bitcoins it holds. The market is under pressure from a massive sell-off. Not only the German government, but also the US government is selling bitcoins. In addition, the possibility of Mt. Gox's bitcoin redemption and issuance is increasing.
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