CoinJaw reports:
Joana Cotar, a member of the German Bundestag who supports Bitcoin, publicly criticized the government’s decision to sell off a significant amount of its Bitcoin holdings.
Cotar’s stance comes as hundreds of millions of dollars worth of Bitcoin were transferred from government wallets to exchanges and trading desks, marking the beginning of a large-scale liquidation process.
According to blockchain intelligence firm Arkham, today the German government transferred 547.44 Bitcoin, valued at approximately $30.09 million, to market maker Flow Traders. This transfer represents only a small portion of the government’s 41,000 BTC holdings, currently valued at $2.27 billion.
Cotar described the Bitcoin liquidation as shortsighted, tweeting, “Our government is massively selling Bitcoin instead of following the U.S., which is already debating using Bitcoin as a strategic reserve currency.”
Cotar, an independent politician formerly associated with the Alternative for Germany party until 2022, has been serving in the Bundestag since 2017. This isn’t her first advocacy for Bitcoin; she has delivered speeches wearing BTC-themed attire and has made supporting Bitcoin part of her political agenda.
In her letter addressed to key government officials, including Saxony Minister-President Michael Kretschmer, Federal Finance Minister Christian Lindner, and Chancellor Olaf Scholz, Cotar argues for retaining and strategically utilizing the seized BTC. She wrote, “Bitcoin offers a unique opportunity for diversifying national assets,” emphasizing its potential to mitigate risks associated with traditional asset classes.
She further supports Bitcoin’s role in long-term value preservation, citing its scarcity and deflationary nature as safeguards against inflation. Cotar states, “The country’s vested interest in Bitcoin technology establishes a clear legal framework, fostering local innovation and entrepreneurship, and contributing to active technological and financial development in Germany.”
She also believes that holding Bitcoin and embracing underlying blockchain technology will help attract top talent and foster advancements in the country’s financial and tech sectors.
Rather than selling Bitcoin, Cotar proposes developing a comprehensive Bitcoin strategy: “This may include keeping Bitcoin in the treasury, issuing Bitcoin bonds, or creating a favorable regulatory environment,” she wrote.
Edited by Stacey Elliott.