Bitcoin
German MP calls on government to stop selling Bitcoin
Bundestag MP Joana Cotar has harshly criticized the German government’s recent decision to sell a substantial part yours Bitcoin participations.
The German government recently transferred over $195 million worth of Bitcoin to several cryptocurrency exchanges, including Coinbase, Kraken, and Bitstamp.
The change contributed to increased market volatilitywith Bitcoin prices experiencing notable fluctuations. Critics argue that such large-scale government liquidations could have long-term negative impacts on the stability of the cryptocurrency 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 both inside and outside Germany as the government continues to liquidate assets seized in a high-profile case. Critics argue that large-scale government 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 action, contrasting it with discussions in the US, where Bitcoin is being considered a strategic reserve currency.
She addressed her concerns to Saxony’s Minister of Finance, President Michael Kretschmer, Finance Minister Christian Lindner and Chancellor Olaf Scholz, asking them to rethink the strategy.
She emphasized the counterproductive nature of this approach and invited employees to attend an upcoming speaking event titled “Bitcoin Strategies for Nation States” on October 17. The event will be attended by Samson Mow, CEO of JAN3 and a prominent Bitcoin strategist.
The discussion will focus on how policymakers 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 that is gaining traction around the world.
The event will also discuss the issuance of Bitcoin-backed government bonds to attract a new class of investors interested in Bitcoin-denominated fixed-income securities. Such bonds, Mow suggests, could provide a stable source of funding for critical infrastructure projects, spurring economic growth and innovation.
The event draws parallels with 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 advising governments such as those in El Salvador and Mexico lends credibility to his recommendations.