German Lawmaker Calls Government’s Recent Mass Bitcoin Sell-Off “Not Sensible”

Joana Cotar, a member of the German Bundestag, federal parliament, on Thursday, slammed the government’s recent mass Bitcoin sell-off, calling it “not sensible” and “counterproductive.”

The Bitcoin advocate, who last year supported recognizing Bitcoin as legal tender in Germany, wrote on X, she believes holding BTC “as a strategic reserve currency,” rather than selling on a large scale.

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

Criticizing the government’s Bitcoin selling spree as “not sensible and counterproductive,” she urged the government to stop the massive sell-off.

Cotar has sent letters, explaining her grievances to Michael Kretschmer, member of the Christian Democratic Union (CDU), Christian Lindner, the Federal Minister of Finance, and Chancellor Olaf Scholz.

“I am writing to you today to urge you to avoid a hasty sale of Bitcoin in state ownership,” the translation of her letter, read.

“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.”

Additionally, Cotar has also listed down arguments, explaining why a massive Bitcoin sell-off couldn’t be a sensible decision. She wrote that Bitcoin offers a unique opportunity to be a part of diversification of the treasury.

“This mitigates risks associated with excessive exposure to traditional asset classes,” she noted.

Joana Cotar highlighted BTC’s deflationary nature, which would serve as a hedge against inflation and currency devaluation. Further, she also stressed how holding Bitcoin could promote innovation, technical advancement and strengthen Germany’s economic sovereignty.

Germany’s Mass Bitcoin Sell-Off Continues

Cotar’s criticisms come hours after Germany transferred another 1300 Bitcoins on July 4. The assets were transferred in portions to exchanges including Coinbase, Kraken, and Bitstamp.

Additionally, the German government has transferred another 1,700 BTC valued at $98.76 million, to an external address, per Mempool.space.

These mass Bitcoin sell-offs in recent times have fueled speculations within the crypto community, fueling market slump. The BTC market price is $54,168 at press time, which is a 4.28% drop in the last 24 hours.