Joana Cotar, a pro-Bitcoin member of the German Bundestag, has publicly slammed the government’s decision to “hastily” sell off its substantial BTC stack.
German Government’s Bitcoin-Selling Spree Sparks Criticism
Cotar’s remarks come in the wake of the government selling 7,583 BTC — worth $434.9 million at current prices — since June 19, according to data provided by blockchain analytics firm Arkham Intelligence. On July 4, $172 million worth of transfers were made to crypto exchanges Coinbase, Kraken, and Bitstamp. And today, $30 million has already been forwarded to trading firm Flow Traders. The German government-linked wallets now only hold 41,000 Bitcoin, worth $2.3 billion.
“[I] urge you to refrain from a hasty disposal of state-owned Bitcoin,” Cotar wrote to key government officials, including Minister President of Saxony Michael Kretschmer, Federal Minister of Finance Christian Lindner, and Chancellor Olaf Scholz.
Statt #Bitcoin als strategische Reservewährung zu halten, wie es in den USA bereits debattiert wird, verkauft unsere Regierung im großen Stil. Ich habe @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz darüber informiert, warum dies nicht nur nicht sinnvoll, sondern… pic.twitter.com/v9FpzmfLbp
— Joana Cotar (@JoanaCotar) July 4, 2024
The Bitcoin-friendly politician said Bitcoin could help Germany diversify its treasury assets and foster innovation in the nation. She also argued that Bitcoin’s scarcity and deflationary nature could serve as a hedge against inflation and currency devaluation.
“A clear legal framework arising from the state’s self-interest in Bitcoin technology would promote local innovation and entrepreneurship, contributing to positive technological and financial development in Germany,” Cotar posited in the translated letter.
Bitcoin As A Valuable Asset For State Treasury
She further contended that holding the Bitcoin and embracing the underlying blockchain technology would help Germany lure top talent and promote advancement in its financial and tech industries.
“Instead of divesting, I recommend developing a comprehensive Bitcoin strategy. This could include keeping Bitcoin in the state treasury, issuing Bitcoin bonds, or creating a conducive regulatory environment,” Cotar said in the translated statement.
German authorities have not confirmed whether they plan to offload the rest of the Bitcoin. Nonetheless, they already have a willing buyer, with Tron founder Justin Sun recently offering to take the $2 billion Bitcoin off Germany’s hands to avoid destabilizing the crypto market and negatively affecting the BTC price.
That being said, the upcoming liquidation of Mt. Gox Bitcoin holdings adds another layer of complexity to present crypto market dynamics. The Mt. Gox trustee confirmed on Friday that the long-awaited repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) to creditors of the defunct crypto exchange have officially commenced.