German Lawmaker Joana Cotar Urges Government to Halt Bitcoin Sales, Protect Market

NAIROBI (CoinChapter.com)— Joana Cotar, an independent member of the Bundestag, has called on the German government to halt its ongoing Bitcoin sales.

A German parliament member has urged the government to stop selling its Bitcoin stash. The plea comes as the government's large BTC transfers from its wallet have sparked concerns about their impact on the cryptocurrency's market performance.

Joana Cotar, an independent member of the Bundestag, has called on Michael Kretschmer, a deputy chair of the CDU, Christian Lindner, the Federal Minister of Finance, and Chancellor Olaf Scholz to halt the government's Bitcoin sales.

In a letter dated Oct. 12 and seen by CoinChapter, Cotar invites the government officials to a lecture by Bitcoin evangelist Samson Mow on Oct. 17. She emphasizes the importance of Bitcoin as an asset for diversification and a hedge against inflation and currency devaluation.

“Bitcoin is an asset class that can be used to diversify portfolios and hedge against inflation and currency devaluations. It is scarce, promotes innovation, economic sovereignty, and technical progress,” Cotar writes in the letter.

The German government's Bitcoin holdings stem from its role in cracking down on the 'Movie2k.to' piracy website over a decade ago. The government seized BTC from the website, making it one of the largest holders of the cryptocurrency.

Recently, the government sold millions of dollars worth of Bitcoin, contributing to a bearish market sentiment.

According to PeckShieldAlert, the German government transferred another 1,300 BTC to exchanges on Monday, amplifying the selling pressure. At the same time, the government transferred 1,700 BTC to a separate wallet address, later moving a total of 3,000 BTC.

As a result, BTC price fell close to $56,830 at the time of writing, down from recent highs above $62,000. The government's large Bitcoin transfers and sales have raised questions about its strategy, especially considering the cryptocurrency's potential as a strategic reserve currency.

Cotar's plea to halt the government's Bitcoin sales comes amid debates in other countries about holding the cryptocurrency as a strategic asset.

In 2023, Cotar spearheaded a legislative push to adopt Bitcoin as legal tender in Germany, inspired by El Salvador's precedent. The move, alongside the government's substantial BTC reserves, places Germany in a pivotal position to leverage cryptocurrency for national economic strategies.

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