German lawmaker calls on government to halt Bitcoin sales
Bundestag member Joana Cotar has strongly criticized the recent decision by the German government to sell a significant portion of its Bitcoin holdings. The government transferred over $195 million worth of Bitcoin to various crypto exchanges like Coinbase, Kraken, and Bitstamp, leading to increased market volatility and notable price fluctuations for Bitcoin. Critics express concerns that such large-scale liquidations by the government could have adverse long-term effects on the stability of the crypto market.
These sales originated from assets seized during an investigation into the illegal movie streaming site Movie2k.to, resulting in the confiscation of around 50,000 BTC, now valued at over $3 billion. The government’s ongoing liquidation of seized assets has sparked debate and controversy within Germany and beyond, with critics warning about potential negative impacts on Bitcoin’s value and stability.
In response to the government’s actions, Joana Cotar took to Twitter to condemn the move, highlighting the contrast with discussions in the US where Bitcoin is being considered as a strategic reserve currency. She urged Saxony’s Minister President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz to reconsider the strategy, emphasizing its counterproductive nature. Cotar also invited these officials to an upcoming lecture event titled “Bitcoin Strategies for Nation States” on Oct. 17, featuring Samson Mow, CEO of JAN3 and a renowned Bitcoin strategist.
The event aims to explore how political decision-makers can utilize Bitcoin to strengthen their national economies. Mow is expected to provide insights into the advantages of holding Bitcoin as part of national financial strategies, a concept gaining global attention. Discussions will also cover the potential issuance of Bitcoin-backed government bonds to attract a new investor class interested in fixed-income securities denominated in Bitcoin. Mow suggests that these bonds could offer a stable funding source for critical infrastructure projects, fostering economic growth and innovation.
The event draws parallels to El Salvador’s groundbreaking decision in 2021 to adopt Bitcoin as legal tender, underscoring the potential for similar initiatives to drive economic change. Mow’s experience in advising governments like those of El Salvador and Mexico lends credibility to his recommendations. The event signifies a growing interest among nations in leveraging Bitcoin for economic development and financial innovation.
