As mipadi says, your GPG key password is requested. You really do not want this on your command line, as you suggest, as this can make it visible to other users and therefore compromise your security. Knowing this, the creators of gpg and git do not allow you to shoot yourself in the foot like that. Of course, this asks the question of how to do this automatically so that you do not kill yourself by typing your password a hundred times.
gpg-agent is very useful for this. You may need to install this separately from gpg (for example, on Ubuntu, you want the gnupg-agent package). Then make sure ~/.gnupg/gpg.conf contains the string (uncommented):
use-agent
With a gpg agent installed, your system can automatically call it for you. If the environment variable GPG_AGENT_INFO , then you should go. Otherwise, run the agent:
eval $(gpg-agent --daemon --sh)
(This is for bash; adjust as required for other shells.)
Now that you need to unlock your GPG key, you should get a pop-up window (or some other method) to enter your password. After entering, you will not need to enter it again, since all other requests are sent to the agent who has already unlocked your key.
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