German MP Criticizes Government’s Large-Scale Bitcoin Sell-Off as “Counterproductive”

Germany Bitcoin Sell-Off

Joana Cotar, a German Bundestag member, sharply criticized the government’s recent large-scale Bitcoin sell-off on Thursday, labeling the move as “not sensible” and “counterproductive.”

Cotar, an advocate for Bitcoin who supported its recognition as legal tender in Germany last year, expressed her concerns on X. She emphasized the importance of holding Bitcoin as a strategic reserve currency instead of engaging in extensive sales.

In her critique, Cotar described the government’s Bitcoin liquidation as ill-advised and urged an immediate halt to the sell-off. She has sent letters to Michael Kretschmer of the Christian Democratic Union (CDU), Federal Minister of Finance Christian Lindner, and Chancellor Olaf Scholz, urging them to reconsider.

“I am writing to you today to urge you to avoid a hasty sale of Bitcoin in state ownership,” reads the translation of her letter. “Instead of selling, I recommend developing a comprehensive Bitcoin strategy. This could include keeping Bitcoin in the treasury, issuing Bitcoin bonds, or creating a conducive regulatory environment.”

Cotar outlined several arguments against the massive sell-off, highlighting Bitcoin’s role in diversifying the treasury and mitigating risks associated with traditional asset classes. She also pointed out Bitcoin’s deflationary nature, which could serve as a hedge against inflation and currency devaluation. Furthermore, she stressed that holding Bitcoin could spur innovation, technological advancement, and strengthen Germany’s economic sovereignty.

Germany’s Mass Bitcoin Sell-Off Continues

Cotar’s criticisms came shortly after Germany transferred another 1,300 Bitcoins on July 4 to exchanges such as Coinbase, Kraken, and Bitstamp. Additionally, the government transferred 1,700 BTC, valued at $98.76 million, to an external address, according to Mempool.space.

These significant Bitcoin sell-offs have sparked speculations within the crypto community, contributing to a market slump. As of press time, the BTC market price stands at $54,168, a 4.28% drop in the last 24 hours.