Joana Cotar, a member of the German Bundestag, has publicly condemned the government's decision to sell large amounts of seized bitcoin, urging policymakers to instead hold the cryptocurrency as a strategic reserve asset. In a series of posts on social media platform X, she argued that selling bitcoin on such a scale is not only unwise but also counterproductive to Germany's long-term economic and geopolitical interests.
Government Selling Spree Under Fire
According to blockchain intelligence firm Arkham, the German government recently offloaded approximately $175 million worth of bitcoin in a single day. Despite these sales, the government still retains over 40,000 BTC, valued at roughly $2.3 billion at current market prices. Cotar criticized the strategy, stating that liquidating seized assets without a clear long-term plan squanders a unique opportunity to build a national digital reserve.
Invitation to a High-Level Bitcoin Lecture
To advance her proposal, Cotar has formally invited key political figures — including Chancellor Olaf Scholz, Finance Minister Christian Lindner, and Saxony's state premier Michael Kretschmer — to a lecture titled “Bitcoin Strategies for Nation States.” The event will take place on October 17, 2024 at the Paul-Löbe-Haus in Berlin, with prominent Bitcoin advocate Samson Mow as the featured speaker. Cotar believes that a deeper understanding of Bitcoin's strategic advantages could shift Germany's policy from short-term liquidation to long-term holding.
Market Impact and Broader Context
The government's selling coincides with the long-awaited distribution of bitcoin from the Mt. Gox restitution process, creating a two-sided supply shock that has pushed bitcoin's price down to around $55,724. Market analysts note that while sales may provide short-term liquidity, they also suppress prices and reduce potential future gains for the state.
Germany's approach contrasts with that of El Salvador, which has adopted bitcoin as legal tender and regularly buys more. In the United States, several states have proposed bills to hold bitcoin in their treasuries. Cotar's stance adds momentum to the global debate on whether major economies should treat bitcoin as a reserve asset rather than a nuisance to be sold off.
What’s Next?
Cotar concluded her remarks by calling on the government to halt all bitcoin sales immediately and convene a cross-party working group to evaluate the benefits of a national bitcoin reserve. “Bitcoin is not an enemy weapon; it is a strategic tool for our nation's future. If we sell now, we will only regret it later,” she wrote.
The lecture in October could prove pivotal in shaping German policy, especially if high-ranking officials attend and engage with the arguments put forward by Samson Mow and other experts.