EU Parliament Member Advocates for Strategic Bitcoin Reserves, Opposes Digital Euro Initiative

French Parliament Member Sarah Knafo has made waves in European financial circles by urging the EU to prioritize Bitcoin as a national strategic asset while rejecting the European Central Bank’s (ECB) plans for a centralized digital euro.

In a compelling speech delivered on Dec. 17, Knafo called for European nations to build strategic Bitcoin reserves, foster the development of the crypto mining industry, and ease the tax burden on cryptocurrency holders. Her stance signals a bold divergence from traditional financial strategies and a push toward embracing decentralized finance as a tool for economic resilience.

"It’s Time to Bet on Bitcoin"

During her address, Knafo stated:

"It’s time to bet on freedom. It’s time for our states to bet on Bitcoin, to build national strategic reserves, and to develop the mining industry."

She sharply criticized the ECB's proposed digital euro, labeling it a centralized mechanism that could grant excessive power to central authorities over individuals’ finances. Knafo framed her argument around the broader decentralization movement, highlighting Bitcoin’s role as a hedge against inflation and a pathway to financial sovereignty.

Citing Global Bitcoin Adoption as a Model

Knafo pointed to key global examples to bolster her argument, referencing El Salvador’s groundbreaking decision in 2021 to adopt Bitcoin as legal tender and the growing momentum in the U.S. for a national Bitcoin reserve. She also highlighted statements from Federal Reserve Chairman Jerome Powell, who recently compared Bitcoin to digital gold, as a signal of Bitcoin’s increasing legitimacy in traditional financial circles.

Notably, Knafo lauded Bitcoin’s recent milestone of surpassing $100,000 in value, calling it a testament to the global shift toward decentralized finance.

"The whole world is now preparing to take advantage of this decentralized finance revolution," she remarked. "Meanwhile, the EU clings to outdated financial systems that are prone to inflation and deficits."

A Call to Reform EU Financial Policies

Knafo's criticism of the EU extended to its reliance on traditional financial mechanisms, which she described as vulnerable to economic mismanagement. She asserted that the EU's hesitance to adopt cryptocurrencies is leading to wasted opportunities to protect its citizens from inflation and financial instability.

"It is time for a paradigm shift. It is time to protect our people from inflation and the poor economic choices of our states," Knafo declared.

A Growing Trend: Nations Eyeing Bitcoin Reserves

Knafo’s call aligns with a growing trend among global policymakers advocating for national Bitcoin reserves. On Dec. 16, former U.S. President Donald Trump reaffirmed his plan to establish a strategic Bitcoin reserve, positioning the U.S. as the "crypto capital." States such as Texas, Alabama, and Pennsylvania are already advancing legislation to incorporate Bitcoin reserves into their financial strategies.

Japan and Russia have also witnessed lawmakers urging their governments to consider Bitcoin reserves as a safeguard against economic instability. In Brazil, legislators recently introduced a bill to limit the nation’s reserves to approximately $18.5 billion worth of Bitcoin, signaling a strategic move to diversify national assets.

The Path Forward for Europe

Knafo emphasized that Europe cannot afford to lag in this global shift toward decentralized finance. By adopting Bitcoin reserves and fostering crypto innovation, she argued, the EU could secure its economic future and maintain its relevance in the evolving global financial landscape.

"This is not just a financial strategy—it’s a strategy for freedom and sovereignty," she concluded.

As the EU deliberates its stance on digital currencies, Knafo’s proposals mark a pivotal moment in the ongoing debate over the future of finance in Europe. Her advocacy for Bitcoin reserves and rejection of the digital euro highlight a clear push for decentralization as a cornerstone of financial innovation.

This bold call to action underscores the growing recognition of Bitcoin’s potential as a transformative force in global finance, leaving the EU with critical decisions to make about its role in the decentralized economy.