German MP urges government to stop selling Bitcoin
German MP urges government to stop selling Bitcoin Assad Jafri · 1 month ago · 2 min read
Cotar condemned the government's move, contrasting it with discussions in the US, where Bitcoin is being considered as a strategic reserve currency.
2 min read
Updated: Jul. 4, 2024 at 10:17 pm UTC
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Bundestag member Joana Cotar strongly criticized the German government’s recent decision to sell a substantial portion of its Bitcoin holdings.
The German government recently moved over $195 million worth of Bitcoin to various crypto exchanges, including Coinbase, Kraken, and Bitstamp.
The move has contributed to increased market volatility, with Bitcoin prices experiencing notable fluctuations. Critics argue that such large-scale liquidations by the government could have long-term negative impacts on the crypto market’s stability.
The sales stem from assets seized during a high-profile investigation into the illegal movie streaming site Movie2k.to, which resulted in the confiscation of approximately 50,000 BTC, now valued at over $3 billion.
The sales have sparked controversy and debate within Germany and beyond as the government continues to liquidate assets seized in a high-profile case. Critics argue that the government’s large-scale liquidations could have long-term negative impacts on Bitcoin’s value and stability.
Counterproductive approach
In a series of tweets, Cotar condemned the government’s move, contrasting it with discussions in the US, where Bitcoin is being considered as a strategic reserve currency.
She addressed her concerns to Saxony’s Minister, President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz, urging them to rethink the strategy.
She emphasized the counterproductive nature of this approach and invited the officials to attend an upcoming lecture event titled “Bitcoin Strategies for Nation States” on Oct. 17. The event will feature Samson Mow, CEO of JAN3 and a prominent Bitcoin strategist.
The discussion will focus on how political decision-makers can leverage Bitcoin to bolster their national economies. Mow is expected to provide insights into the potential benefits of holding Bitcoin as part of national financial strategies, a topic gaining traction worldwide.
The event will also discuss the issuance of Bitcoin-backed government bonds to attract a new class of investors interested in fixed-income securities denominated in Bitcoin. These bonds, Mow suggests, can provide a stable source of funding for critical infrastructure projects, spurring economic growth and innovation.
The event draws parallels to El Salvador’s pioneering move in 2021 to adopt Bitcoin as legal tender, highlighting the potential for similar initiatives to drive economic transformation. Mow’s experience with advising governments like those of El Salvador and Mexico lends credibility to his recommendations.
