Bitrabo Editorial
In a critical response to the German government’s recent strategy regarding Bitcoin, Joana Cotar, a member of parliament, has expressed strong disapproval of the decision to sell off its Bitcoin holdings during a volatile period in the market.
A vocal advocate of innovation and digital assets in the Bundestag, Cotar argued that the timing of this action is ill-advised and raises doubts about the potential long-term benefits of holding digital assets like Bitcoin.
Call for Rethinking Bitcoin Sell-Off
Joana Cotar took to social media to voice her concerns about the German government’s move to liquidate its Bitcoin holdings amidst market uncertainty, criticizing it as an unwise decision. She proposed that rather than selling off the assets at a large scale, the government should consider retaining them as a strategic reserve currency, akin to discussions in the United States.
Expressing discontent over the ongoing sell-offs, Cotar reached out to President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz, outlining the reasons why this approach is not only unreasonable but also ineffective.
“Instead of selling, I recommend developing a comprehensive Bitcoin strategy. This could involve keeping Bitcoin in the treasury, issuing Bitcoin bonds, or creating a conducive regulatory environment,” Cotar stated in her letter.
In her communication, Cotar highlighted various ways in which Bitcoin could benefit the nation’s economy and advised the government against hastily selling off the crypto asset, emphasizing aspects such as treasury diversification, long-term value preservation, innovation promotion, economic autonomy, and technological progress.
She also extended invitations to the aforementioned officials to attend the “Bitcoin Strategies for Nation States” event with Samson Mow on October 17, aiming to provide insights into the potential of cryptocurrencies.
Cotar’s stance reflects the ongoing discourse in German politics regarding the role of cryptocurrencies in financial policies, showcasing the divergence between proponents of progressive financial regulations and those advocating for a more cautious approach to digital assets.
Additional Bitcoin Sell-Off by the Government
Despite Cotar’s critique, reports indicate that the German government has continued with further sales of Bitcoin from its reserves, according to intelligence platform, Arkham. Recent data reveals that thousands of BTC have been sold by the government over the last two weeks.
Recent information from Arkham discloses another recent sale of approximately 500 BTC worth $27 million to a specified wallet address. Notably, this address had previously received a significant transfer of 1,700 BTC totaling $99 million from the German government. Despite these substantial sell-offs, the government still retains over 41,000 BTC valued at $2.27 billion.