German Lawmaker Criticizes Government’s Recent Large-Scale Bitcoin Sale as “Unwise”
Joana Cotar, a member of the German Bundestag, expressed strong disapproval on Thursday regarding the government’s recent substantial sell-off of Bitcoin, labeling it as “unwise” and “counterproductive.” Cotar, who has been a vocal advocate for Bitcoin and previously supported its recognition as legal tender in Germany, emphasized the importance of holding BTC as a strategic reserve rather than divesting on a massive scale.
Describing the government’s actions as detrimental, she called for an immediate halt to the ongoing sell-off. Cotar directed her concerns in letters to key figures including Michael Kretschmer of the Christian Democratic Union (CDU), Christian Lindner, the Federal Minister of Finance, and Chancellor Olaf Scholz.
In her correspondence, Cotar urged against precipitous sales of Bitcoin held by the state, advocating instead for the formulation of a comprehensive Bitcoin strategy. She suggested potential measures such as retaining Bitcoin in national reserves, issuing Bitcoin bonds, or establishing a supportive regulatory framework.
Cotar further elaborated on the drawbacks of a large-scale Bitcoin divestment, citing Bitcoin’s role in diversifying national assets and mitigating risks associated with conventional asset classes. She highlighted Bitcoin’s deflationary properties as a safeguard against inflation and currency devaluation, underscoring its potential to foster technological innovation and bolster Germany’s economic autonomy.
The criticism from Cotar comes in the wake of Germany’s recent transfer of 1,300 Bitcoins on July 4 to various exchanges including Coinbase, Kraken, and Bitstamp. An additional 1,700 BTC valued at $98.76 million was also transferred to an external address, according to Mempool.space.
These series of significant Bitcoin sell-offs have stirred speculation within the cryptocurrency community and contributed to a recent 4.28% decline in BTC’s market price, currently standing at $54,168.
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