German MP urges government to stop selling bitcoins

Bundestag MP Joana Cotar has sharply criticized the German government’s recent decision to sell a substantial portion of its Bitcoin holdings.

The German government recently transferred over $195 million worth of Bitcoin to various cryptocurrency exchanges, including Coinbase, Kraken, and Bitstamp.

The move has contributed to increased market volatility, with Bitcoin prices experiencing notable fluctuations. Critics say such large-scale liquidations by the government could have long-term negative effects on the stability of the cryptocurrency market.

The sales come from assets seized during a high-profile investigation into 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 in Germany and beyond, as the government continues to liquidate assets seized in a high-profile case. Critics say the government’s large-scale liquidations could have long-term negative effects on the value and stability of bitcoin.

A counterproductive approach

In a series of tweets, Cotar condemned the government’s decision, contrasting it with discussions in the United States, where Bitcoin is considered a strategic reserve currency.

She expressed her concerns to Saxony’s minister, President Michael Kretschmer, Finance Minister Christian Lindner and Chancellor Olaf Scholz, urging them to rethink their strategy.

She highlighted the counterproductive nature of this approach and invited officials to attend an upcoming conference called “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 policymakers can leverage 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 traction around the world.

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

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