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- German lawmaker Joana Cotar has criticized the government for its ongoing sales of Bitcoin (BTC) when it should be holding onto it.
The German government’s regular transfers (and subsequent sales) of Bitcoin (BTC) to exchanges are causing unease among crypto enthusiasts, with several individuals expressing their concerns.
Cease German Government’s Bitcoin Transfers
In recent weeks, the German government has engaged in numerous transactions involving the transfer of BTC.
Earlier on Thursday, the government reportedly sold another 1,300 Bitcoin (BTC) to prominent crypto exchanges.
Notably, 500 BTC valued at $29.05 million was sent to Bitstamp, according to blockchain analytics company Arkham Intelligence.
In a similar manner, the German government transferred 400 BTC worth $23.24 million to Coinbase, along with another 400 BTC to Kraken.
Arkham Intelligence indicated that the total amount offloaded was nearly $76 million. It is significant that the price of Bitcoin fell below $58,000 shortly after this substantial liquidation, raising fears of a further decline.
In reaction to this liquidation, Joana Cotar, an independent member of the Bundestag, criticized the government’s actions, urging it to halt its Bitcoin selling activities.
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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 directed her concerns to Michael Kretschmer, one of the deputy chairs of the CDU, Christian Lindner, the Federal Minister of Finance, and Chancellor Olaf Scholz. She described the action as “counterproductive.”
She believes that Bitcoin offers “a unique opportunity” for investors to diversify their portfolios and made sure to communicate her views to the officials.
Cotar compared the potential of the leading cryptocurrency to that of traditional assets.
She pointed out that the former could help reduce the risks associated with investing in the latter and experiencing excessive exposure.
Furthermore, she extended an invitation for her upcoming lecture to them. The event is set to take place on October 17 and will feature Bitcoin evangelist Samson Mow.
More Entities View BTC as Inflation Hedge
Cotar recognizes Bitcoin’s potential to serve as a hedge against inflation and currency devaluation due to its scarcity.
To a significant extent, she is not alone in her perspective on the flagship cryptocurrency. Jeremy Allaire, CEO of Circle, a prominent financial technology firm, has previously emphasized the increasing attractiveness of Bitcoin as a safeguard against global economic instability.
Anthony Scaramucci of SkyBridge Capital has previously debated with Peter Schiff, a leading advocate of gold, regarding Bitcoin’s role as an inflation hedge.
While Schiff presented arguments based on Bitcoin’s slow transaction speed and high costs as barriers to its everyday use, Scaramucci countered by highlighting the coin’s fixed supply and its potential for long-term value storage.
