German MP Criticizes Government’s Approach of Selling Bitcoin

German Member of Parliament and Bitcoin advocate Joana Cotar has called on the government to halt its rapid Bitcoin sell-offs.

Cotar argued that it is neither “sensible” nor “productive” and believes that Bitcoin should be adopted as a strategic reserve currency to safeguard against economic instability.

Joana Cotar Criticizes German Bitcoin Sell-Offs

In a July 4 post on X, Cotar expressed her concerns about the government’s current strategy, stating, “Instead of holding Bitcoin as a strategic reserve currency, as is already being debated in the USA, our government is selling on a large scale.”

Statt #Bitcoin als strategische Reservewährung zu halten, wie es in den USA bereits debattiert wird, verkauft unsere Regierung im großen Stil. Ich habe @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz darüber informiert, warum dies nicht nur nicht sinnvoll, sondern… pic.twitter.com/v9FpzmfLbp

— Joana Cotar (@JoanaCotar) July 4, 2024

Cotar highlighted that a further sell-off of Bitcoin is neither “sensible” nor “productive,” emphasizing that Bitcoin could serve as a valuable asset for diversifying the country’s treasury. She also pointed out that holding Bitcoin could help protect against inflation and currency devaluation.

Data from the cryptocurrency intelligence platform Arkham reveals that over the past month, the German government sold 8,611 BTC, resulting in a net portfolio change of -$820 million at current prices. Following these sales, Germany now holds 41,226 BTC, valued at approximately $2.28 billion.

German Government’s Bitcoin Sales and Mt. Gox Payout

Recent movements reported by CryptoPotato indicate that the German government transferred approximately 1,300 coins, valued at around $75 million, to centralized exchanges like Coinbase, Kraken, and Bitstamp.

Suspicions regarding Bitcoin sales were initially raised concerning the wallet associated with the German Federal Criminal Police Office (BKA) on June 19. This wallet made a transfer of 6,500 coins, valued at over $425 million at the time.

These assets were seized in 2013 when the BKA confiscated nearly 50,000 BTC from the operators of Movie2k.to, a widely known film piracy website.

Meanwhile, Justin Sun, founder of the TRON blockchain, recently teased his readiness to engage in negotiations with the German government to acquire all BTC off-market. “I am prepared to negotiate with the German government to acquire all BTC off-market,” Sun stated on X.

The German government’s ongoing sale of Bitcoin isn’t the only factor influencing the crypto market. The anticipated $9 billion compensation payout to creditors of the collapsed cryptocurrency exchange Mt. Gox has also been linked to the recent decline in Bitcoin prices.

Bitcoin’s value has dropped below $55,000, a level not seen since February. This follows reports that Mt. Gox transferred about 47,000 BTC, worth approximately $2.7 billion, to a new wallet ahead of the payout.