Joana Cotar, a prominent member of Germany’s parliament who likes Bitcoin, criticized her government for selling a lot of Bitcoin quickly. She thinks this decision was rushed and not helpful. Cotar believes Germany should keep Bitcoin to protect against money losing its value and to encourage new ideas in digital money.
The controversy arose after the German government transferred Bitcoin tokens worth over $195 million to various crypto exchanges, sparking criticism from Cotar and others in the crypto community. Cotar specifically called out President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz for their role in the decision-making process.
In her critique, Cotar emphasized that hastily selling off Bitcoin could undermine Germany’s long-term economic interests and suggested alternative strategies, such as using Bitcoin to diversify treasury assets or issuing Bitcoin-backed bonds to attract investment. She referenced the positive impact of embracing Bitcoin, drawing parallels with El Salvador’s pioneering move to adopt BTC as legal tender in 2021.
Joana Cotar Criticizes German Bitcoin Sales, Advocates Strategic Reserve Approach
Furthermore, Cotar announced plans to host an event titled “Bitcoin Strategies for Nation States,” scheduled for October 17. The event aims to explore the potential benefits of integrating Bitcoin into national economic strategies, featuring discussions on topics like government bonds backed by Bitcoin and enhancing economic transactions through digital currency initiatives.
Meanwhile, the German government’s Bitcoin sell-offs have amounted to approximately 7,583 BTC since mid-June, totaling over $434.9 million at current market prices. These transactions, which included transfers to exchanges like Kraken and Coinbase, have not only raised eyebrows within the crypto community but also contributed to increased market volatility and a decline in Bitcoin’s price.
Cotar’s criticisms reflect broader concerns about the strategic implications of selling off Bitcoin reserves prematurely. Her advocacy underscores a growing debate within Germany and internationally on the role of cryptocurrencies in national economic policies and financial resilience strategies.
