Originally published on: December 17, 2024
In a bold move, European lawmaker Sarah Knafo has proposed the establishment of a strategic Bitcoin reserve for the European Union, rejecting the idea of a digital euro. Knafo, a French magistrate and member of the European Parliament, delivered a passionate speech advocating for the adoption of Bitcoin over the central bank digital currency (CBDC) being developed by the European Central Bank (ECB).
Knafo’s speech, which was shared on social media, called for a shift away from regulatory control in the crypto space and towards embracing the decentralized nature of Bitcoin. She highlighted the recent developments in cryptocurrency regulation worldwide, including El Salvador’s adoption of Bitcoin and the crypto-friendly stance of the incoming US administration.
The lawmaker emphasized the need to protect citizens from inflation and economic instability, criticizing what she referred to as “totalitarian temptations” from the ECB in pushing for a digital euro controlled solely by the central bank.
While the ECB has been exploring the idea of a digital euro for several years, Knafo believes that now is the time for the EU to take a different approach by creating a reserve of Bitcoin. This proposed Bitcoin reserve would serve as a safeguard against economic uncertainties and governmental overreach, according to Knafo.
European authorities have been grappling with the decision of whether to launch a digital euro, citing concerns about privacy risks and the impact on private payment firms. Despite ongoing deliberations, the ECB aims to make a final decision on the matter by October 2025.
Knafo’s call for a strategic Bitcoin reserve has ignited a debate within the EU Parliament, signaling a potential shift in the approach to cryptocurrency regulation in Europe. As the discussion continues, the future of digital currencies in the European Union remains uncertain, with proponents like Knafo advocating for a more decentralized and independent financial system.