EU Lawmaker Calls for Strategic Bitcoin Reserve

Sarah Knafo, a European Parliament member and French magistrate, has called on the European Union to establish a strategic Bitcoin reserve while opposing the rollout of the digital euro, the European Central Bank’s (ECB) proposed central bank digital currency (CBDC).

In a passionate speech delivered before the European Parliament, Knafo emphasized the need to shift towards decentralized solutions like Bitcoin:

“No to the digital euro, yes to a strategic Bitcoin reserve,” Knafo declared in a video shared via X.

She criticized the ECB for what she termed “totalitarian temptations,” arguing that Bitcoin offers a decentralized and inflation-resistant alternative.

Knafo Criticizes Europe’s Regulatory Stance

Knafo slammed the European Union for prioritizing regulation, taxation, and restrictive policies over innovation in the crypto sector. She contrasted Europe’s approach with other global developments:

1. El Salvador: Adopted Bitcoin as legal tender in 2021.
2. United States: President-elect Donald Trump has expressed pro-crypto sentiments, and Federal Reserve Chair Jerome Powell recently referred to Bitcoin as “digital gold.”

“Europe has taken a completely different approach to crypto,” Knafo said. “It is focused on regulation, taxation, and stifling innovation.”

“Time to Protect Citizens from Inflation”

Highlighting the economic challenges facing Europe, Knafo argued that Bitcoin could serve as a hedge against inflation and poor monetary policies:

“It is time to change the paradigm. It is time to protect our people from inflation and the poor economic choices of our states.”

She strongly opposed the ECB’s plans to impose a centralized digital euro, describing it as an attempt to exert complete financial control:

“It is time to say no to the totalitarian temptations of the European Central Bank, which wants to impose a digital euro entirely in its hands.”

The Strategic Role of Bitcoin

Knafo’s proposal to establish a strategic Bitcoin reserve signals a growing interest in Bitcoin’s role as a store of value and economic safeguard. This approach aligns with global trends where nations and institutions are increasingly exploring Bitcoin’s potential as digital gold.

Her stance challenges the EU to reconsider its regulatory focus and adopt a more pro-innovation framework that embraces decentralized solutions for economic stability.

Sarah Knafo’s bold call to reject the digital euro and adopt a strategic Bitcoin reserve underscores a growing divide in global approaches to digital currencies. While Europe leans towards centralization through the ECB’s CBDC, Knafo’s advocacy for Bitcoin highlights its potential as a decentralized alternative to protect against inflation and bolster economic resilience.

As the debate intensifies, Knafo’s proposal could mark a pivotal moment for Europe’s crypto policy direction.