Bundestag member Joana Cotar strongly criticized the German government’s recent decision to sell a substantial part of its Bitcoin holdings.
The German government recently moved more than $195 million worth of Bitcoin to several crypto exchanges, including Coinbase, Kraken and Bitstamp.
This move has contributed to increased market volatility, with Bitcoin prices seeing notable swings. Critics argue that such large-scale government liquidations could have negative long-term consequences for the stability of the crypto market.
The sales stem from assets seized during a high-profile investigation into illegal movie streaming site Movie2k.to, which resulted in the seizure of approximately 50,000 BTC, now valued at more than $3 billion.
The sales have sparked controversy and debate within Germany and abroad, as the government continues to liquidate assets seized in a high-profile case. Critics argue that the large-scale government liquidations could have negative long-term consequences for Bitcoin’s value and stability.
Counterproductive approach
In a series of tweets, Cotar condemned the government’s move, contrasting with discussions in the US, where Bitcoin is considered a strategic reserve currency.
She addressed her concerns to Saxony’s minister, President Michael Kretschmer, Finance Minister Christian Lindner and Chancellor Olaf Scholz, urging them to reconsider the strategy.
Highlighting the counterproductive nature of this approach, she invited the officials to attend an upcoming lecture event titled “Bitcoin Strategies for Nation States” on October 17. The event will feature Samson Mow, CEO of JAN3 and a prominent Bitcoin strategist.
The discussion will focus on how political decision makers can use Bitcoin to strengthen their national economies. Mow is expected to provide insight into the potential benefits of holding Bitcoin as part of national financial strategies, a topic that is gaining popularity worldwide.
The event will also discuss the issuance of Bitcoin-backed government bonds to attract a new class of investors interested in Bitcoin-denominated fixed income securities. These bonds, Mow suggests, can provide a stable source of financing for critical infrastructure projects, spurring economic growth and innovation.
The event draws parallels with El Salvador’s groundbreaking 2021 move to adopt Bitcoin as legal tender, and highlights the potential for similar initiatives to drive economic transformation. Mow’s experience advising governments such as El Salvador and Mexico lends credibility to his recommendations.