German Lawmaker Criticizes Government’s Recent Bitcoin Sell-Off as “Unwise”
Joana Cotar, a member of the German Bundestag, strongly criticized the recent mass sell-off of Bitcoin by the government, describing it as “unwise” and “counterproductive.” Cotar, a prominent advocate for Bitcoin who had previously supported its recognition as legal tender in Germany, voiced her concerns on X, emphasizing the importance of holding BTC as a strategic reserve rather than liquidating it on a large scale.
In her statement, Cotar condemned the government’s ongoing sale of Bitcoin as detrimental and urged an immediate halt to these actions. She has formally communicated her objections to key figures including Michael Kretschmer of the Christian Democratic Union (CDU), Christian Lindner, the Federal Minister of Finance, and Chancellor Olaf Scholz.
“I am writing today to urge against hastily disposing of Bitcoin held by the state,” reads an excerpt from her letter. “Instead, I propose the development of a comprehensive Bitcoin strategy, which could involve retaining Bitcoin in the national treasury, issuing Bitcoin bonds, or fostering a supportive regulatory framework.”
Additionally, Cotar presented arguments against the large-scale sell-off, highlighting Bitcoin’s potential to diversify the treasury and mitigate risks associated with traditional asset classes. She underscored Bitcoin’s deflationary properties as a hedge against inflation and currency devaluation, emphasizing its role in fostering innovation, technological advancement, and bolstering Germany’s economic independence.
The criticism by Cotar comes shortly after Germany transferred an additional 1,300 Bitcoins on July 4, with subsequent transfers totaling 1,700 BTC valued at $98.76 million to an external address, as reported by Mempool.space. These actions have stirred speculation within the crypto community, contributing to a market decline, with Bitcoin’s current market price at $54,168, reflecting a 4.28% decrease over the past 24 hours.
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