German Lawmaker Criticizes Government’s Massive Bitcoin Sell-Off as “Counterproductive”

German Lawmaker Criticizes Government’s Massive Bitcoin Sell-Off as “Counterproductive”

Joana Cotar, a member of the German Bundestag, has strongly criticized the government’s recent large-scale Bitcoin sell-off, describing it as “not sensible” and “counterproductive.” Cotar, a Bitcoin advocate who previously supported recognizing Bitcoin as legal tender in Germany, took to X to express her concerns. She argued that holding Bitcoin as a strategic reserve currency would be more beneficial than selling it off in large quantities.

Cotar has sent letters to prominent government officials, including Michael Kretschmer of the Christian Democratic Union (CDU), Federal Minister of Finance Christian Lindner, and Chancellor Olaf Scholz. In her correspondence, she urged the government to halt the hasty sale of state-owned Bitcoin and instead develop a comprehensive Bitcoin strategy. This strategy, she suggested, could involve keeping Bitcoin in the treasury, issuing Bitcoin bonds, or creating a favorable regulatory environment for cryptocurrency.

In her letters, Cotar outlined several reasons why a massive Bitcoin sell-off is not a wise decision. She emphasized that Bitcoin provides a unique opportunity for diversification of the treasury, mitigating risks associated with overexposure to traditional asset classes. She also highlighted Bitcoin’s deflationary nature, which could serve as a hedge against inflation and currency devaluation. Moreover, Cotar argued that holding Bitcoin could promote innovation, technical advancement, and strengthen Germany’s economic sovereignty.

Cotar’s criticisms followed the government’s transfer of another 1,300 Bitcoins on July 4 to exchanges such as Coinbase, Kraken, and Bitstamp. Additionally, the government moved another 1,700 BTC, valued at $98.76 million, to an external address, according to Mempool.space. These actions have sparked speculation within the crypto community and contributed to a market slump. At press time, Bitcoin’s market price was $54,168, reflecting a 4.28% drop in the last 24 hours.

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