German MP criticizes government’s approach to selling Bitcoin

German Member of Parliament and Bitcoin advocate Joanna Kottar has called on the government to stop the rapid sale of Bitcoin.

Kotar argued that it is not “intelligent” or “productive” and believes that Bitcoin should be considered as a strategic reserve currency to protect against economic instability.

Joanna Kotar Criticizes German Bitcoin Sales

In an article posted on X on July 4, Kotar expressed concern that “instead of holding Bitcoin as a strategic reserve currency, our government is overselling it in the midst of the turmoil in the USA.”

Our government is floundering in the US and selling off #Bitcoin at a massive rate instead of holding it as a strategic reserve currency. Not only does this make no sense… pic.twitter.com/v9FpzmfLbp Why I informed @MPKretschmer, @c_lindner and @Bundeskanzler @OlafScholz.

— Joana Cotar (@JoanaCotar) July 4, 2024

Kotar stated that selling more Bitcoin is not “sensible” or “feasible”. She also pointed out that holding Bitcoin can help protect against inflation and currency collapse.

According to Arkham data of the cryptocurrency intelligence platform, in the last month, the German government sold 8,611 BTC, due to the net portfolio change – $ 820 million at the current price. Following these sales, Germany now holds 41,226 BTC, worth approximately $2.28 billion.

German Government Bitcoin Sale and Gox Payment

Recent moves reported by CryptoPotato include the German government transferring around 1,300 coins worth an estimated $75 million to centralized exchanges such as Coinbase, Kraken and Bitstamp.

On June 19, suspicions were raised regarding Bitcoin sales regarding a wallet linked to the German Federal Criminal Police Office (BKA). This wallet transferred 6,500 coins worth over $425 million at the time.

These properties were acquired in In 2013, BKA acquired nearly 50,000 BTC from the operators of Movie2k.to, a popular movie piracy website.

Meanwhile, TRON blockchain founder Justin Sun recently teased his readiness to negotiate with the German government to get all BTC off the market. “I am ready to negotiate with the German government to get all BTC off the market,” Sun said on X.

The German government's ongoing sale of Bitcoin is not the only factor influencing the crypto market. The expected $9 billion in compensation payments to creditors of cryptocurrency exchange Matt Gox has also been linked to the recent decline in the price of Bitcoin.

Bitcoin's price has fallen below $55,000, a level not seen since February. This follows a report that MitGox transferred 47,000 BTC worth around $2.7 billion to a new wallet before the payment.