German Parliament Member Joana Cotar Urges Government To Rethink Bitcoin Sell-Off Strategy

In a scathing critique of the recent Bitcoin management strategy of the German government, Joana Cotar, a member of parliament has openly expressed her disapproval of the plan to sell off its BTC holdings during a volatile time in the market.

German MP Joana Cotar has slammed the government's plan to sell off its Bitcoin (BTC) holdings during a volatile time in the market.

Cotar, a known supporter of innovation and digital assets in the Bundestag, highlighted that this move not only comes at an inopportune moment but also brings into question the long-term benefits of holding digital assets like Bitcoin.

Cotar urges German gov't to reconsider Bitcoin sell-off

On Thursday, German parliament member Joana Cotar took to the X (formerly Twitter) platform to highlight that the government liquidating Bitcoin holdings during a period of market uncertainty is not a strategic move. She criticized the approach, saying that rather than retaining it as a tactical reserve currency, as is currently being discussed in the United States, the government is selling its BTC holdings on a large scale.

Cotar, who is notably unhappy with the constant sell-off in recent weeks, has sent letters to President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz, outlining why this is not only illogical but also ultimately ineffective.

The letter states:

"I recommend developing a comprehensive Bitcoin strategy instead of selling it. This could include keeping Bitcoin in the treasury, issuing Bitcoin bonds, or creating a favorable regulatory environment for Bitcoin."

In the letter, Cotar highlighted several key areas where Bitcoin could enhance the country's economy and urged the government to refrain from rapidly selling the crypto-asset. These include diversification of the treasury, long-term store of value, promotion of innovation, economic sovereignty, and technological advancement.

The parliament member further invited these political figures to the upcoming “Bitcoin Strategies for the Nation States” event with Samson Mow on October 17 to better understand the potential of the crypto-asset.

Cotar's stance underscores the ongoing discussion in German politics regarding the role of cryptocurrencies in the country's financial policy. Her remarks also point to the widening gap between proponents of more innovative, forward-thinking financial regulations and others who support more cautious, conservative approaches to digital assets.

More sell-offs by the German government?

Despite Joana Cortar's cautionary statement, the German government is still selling more BTC from its holdings, as reported by the intelligence platform Arkham. According to Arkham, the government has sold thousands of BTC in the last 2 weeks.

Recent data shows that the German authority carried out another sale of BTC about 4 hours ago to the wallet address 139PoPE1…7f3VH7ybVu. Approximately 500 BTC, valued at a massive $27 million, was seen being sent to the wallet address.

It's also important to note that the mentioned address also received a hefty transfer of 1,700 BTC, valued at $99 million, from the German government on Thursday. This transaction occurred just minutes after the authorities moved about 1,300 BTC to Coinbase, Bitstamp, and Kraken. While the government has continuously carried out massive sell-offs, its holdings still boast over 41,000 BTC, valued at $2.27 billion.

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