German Bundestag Criticizes Government’s Bitcoin Sale

The sale of seized bitcoins by Germany’s Federal Criminal Police Office (BKA) is counterproductive, according to Bundestag member Joana Cotar.

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

The legislator highlighted ongoing discussions in the United States regarding the interpretation of digital gold as a strategic reserve currency.

Cotar addressed Saxony’s Prime Minister Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz, urging them to reconsider their stance.

She invited officials to a lecture scheduled for October 17 titled “Bitcoin Strategies for Nation States.” One of the speakers at the event will be AN3 CEO Samson Mow.

The discussion will focus on the potential use of digital gold by states to strengthen national economies. Mow is expected to discuss the possible advantages of holding the first cryptocurrency within national financial strategies.

The event will also cover the topic of issuing bitcoin-backed government bonds to attract a new class of investors. According to Mow, such instruments could become a stable source of funding for critical infrastructure projects, stimulating economic growth and innovation.

The expert draws parallels with El Salvador, which experimented with a similar approach in 2021, highlighting the potential of such initiatives for economic transformation.

In recent weeks, German authorities have sold the first cryptocurrency for a total of $195 million through various exchanges, including Coinbase, Kraken, and Bitstamp.

At the time of writing, the BKA’s bitcoin address holds 41,774 BTC, valued at approximately $2.28 billion.

Bloomberg identified these actions as one of the reasons for bitcoin’s sharp decline below the psychological support level of $60,000.