In the ever-evolving world of cryptocurrencies, a prominent German Member of Parliament has stepped forward to criticize her government’s decision to hastily sell off its Bitcoin holdings. Joana Cotar, an independent MP and a vocal Bitcoin advocate has expressed her concerns, urging the government to reconsider its approach and develop a comprehensive Bitcoin strategy.
Cotar’s Critique and Recommendations
Cotar has lambasted the German government’s move to “hastily” sell the Bitcoin in its possession, arguing that this is “not sensible” and “counterproductive.” Instead of offloading the cryptocurrency, she has urged the government to hold it as a strategic reserve currency, a concept already being explored in the United States.
“Instead of holding bitcoin as a strategic reserve currency, as is already being debated in the USA, our government is selling on a large scale,” Cotar wrote in a translated X post.
To address this issue, Cotar has invited the German Chancellor Olaf Scholz, Prime Minister Michael Kretschmer, and Finance Minister Christian Lindner to a “Bitcoin Strategies for Nation States” event on October 17, hosted by Samson Mow, the CEO of Bitcoin company Jan3.
In a letter to Prime Minister Kretschmer, Cotar has “urgently” requested the German government to “refrain from hastily selling the bitcoin in state possession.” She has argued that Bitcoin offers an opportunity to diversify the state’s assets, reducing the risk associated with traditional investments, and can serve as a hedge against inflation and currency depreciation due to its scarcity and deflationary nature.
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
Comprehensive Bitcoin Strategy Proposed
Cotar has emphasized that a clear legal framework for Bitcoin is in Germany’s self-interest and economic sovereignty, contributing to the country’s technological and financial development. She concluded her remarks by urging the government to “develop a comprehensive Bitcoin strategy” instead of selling, which could include maintaining Bitcoin in the state treasury, issuing Bitcoin bonds, and creating a conducive regulatory environment.
German Government’s Bitcoin Transfers
Ahead of Cotar’s criticism, the German government has continued to transfer seized Bitcoin to various cryptocurrency exchanges. According to Arkham data, the government has transferred an additional 3,000 BTC ($175 million) to addresses associated with Bitstamp, Coinbase, Kraken, and a mysterious “139Po” address, bringing the total value of Bitcoin transferred to exchanges to approximately $269 million.
However, the government has also withdrawn at least $86 million from known exchanges during the same period, Arkham’s data shows. Bitcoin is currently trading at around $54,074, down 6% over the last 24 hours and 17% since the German government began moving funds to exchanges on June 18.
As the cryptocurrency landscape continues to evolve, the German government’s decision to sell its Bitcoin holdings has sparked a debate, with Joana Cotar leading the charge to urge a more strategic approach to managing this digital asset.
