Bundestag Member Joana Cotar Criticizes German Government\'s Bitcoin Sell-Off, Contrasts It with US\'s Strategic Reserve Currency Considerations

Bundestag member Joana Cotar strongly criticized the German government's recent decision to sell a substantial portion of its Bitcoin holdings. The German government recently moved over $195 million worth of Bitcoin to various crypto exchanges, including Coinbase, Kraken, and Bitstamp.

A Bundestag member has strongly criticized the German government’s recent decision to sell off a substantial portion of its Bitcoin (BTC) holdings, arguing that it could have a negative impact on the stability of the cryptocurrency.

The government recently moved over $195 million worth of Bitcoin to various crypto exchanges, including Coinbase, Kraken, and Bitstamp, as part of a broader effort to sell off assets that were seized during a high-profile investigation into the illegal movie streaming site Movie2k.to.

The move has contributed to increased market volatility, with Bitcoin prices experiencing notable fluctuations. Critics, such as the Bundestag member, argue that such large-scale liquidations by the government could have long-term negative impacts on the stability of the crypto market.

The sales stem from assets seized during a high-profile investigation into the illegal movie streaming site Movie2k.to, which resulted in the confiscation of approximately 50,000 BTC, now valued at over $3 billion.

The sales have sparked controversy and debate within Germany and beyond as the government continues to liquidate assets seized in a high-profile case. Critics argue that the government’s large-scale liquidations could have long-term negative impacts on Bitcoin’s value and stability.

Counterproductive approach

In a series of tweets, Cotar condemned the government’s move, contrasting it with discussions in the U.S., where Bitcoin is being considered as 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 rethink the strategy.

She highlighted the counterproductive nature of this approach and invited the officials to attend an upcoming lecture event titled “Bitcoin Strategies for Nation States” on Oct. 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 leverage Bitcoin to bolster their national economies. Mow is expected to provide insights into the potential benefits of holding Bitcoin as part of national financial strategies, a topic gaining traction worldwide.

The event will also discuss the issuance of Bitcoin-backed government bonds to attract a new class of investors interested in fixed-income securities denominated in Bitcoin. These bonds, Mow suggests, can provide a stable source of funding for critical infrastructure projects, spurring economic growth and innovation.

The event draws parallels to El Salvador’s pioneering move in 2021 to adopt Bitcoin as legal tender, highlighting the potential for similar initiatives to drive economic transformation. Mow’s experience with advising governments like those of El Salvador and Mexico lends credibility to his recommendations.

The above is the detailed content of Bundestag Member Joana Cotar Criticizes German Government\'s Bitcoin Sell-Off, Contrasts It with US\'s Strategic Reserve Currency Considerations. For more information, please follow other related articles on the PHP Chinese website!