German Lawmaker Slams Government’s Bitcoin Sell-Off Strategy

Joana Cotar, a pro-Bitcoin member of the German Bundestag, has openly criticized the German government’s decision to liquidate a significant portion of its Bitcoin holdings. Her concerns arise as the government initiates transfers of Bitcoin, totaling hundreds of millions of dollars, from state-controlled wallets to exchanges and trading desks. Just today, blockchain intelligence firm Arkham reported that 547.44 BTC, valued at approximately $30.09 million, were moved to market maker Flow Traders.

Cotar, formerly of the Alternative for Germany party and now an independent, argues that these actions are short-sighted, especially considering the ongoing discussions in the U.S. about holding Bitcoin as a strategic reserve currency. She expressed her views on Twitter, underscoring her long-standing support for Bitcoin which includes wearing a BTC t-shirt in Parliament and incorporating cryptocurrency advocacy into her political agenda.

In a letter addressed to top German officials, including Chancellor Olaf Scholz and Minister President of Saxony Michael Kretschmer, Cotar emphasized the potential for Germany to lead in financial innovation and economic sovereignty by leveraging Bitcoin. She highlighted Bitcoin’s deflationary nature and scarcity as tools for safeguarding value and combating inflation.

Cotar also suggested that a robust legal framework supporting Bitcoin could stimulate local innovation and attract talent, enhancing Germany’s financial and technological sectors. Her proposals for a national Bitcoin strategy include retaining Bitcoin in the state treasury, issuing Bitcoin bonds, and fostering a regulatory environment conducive to cryptocurrency growth.