European Union Member of Parliament, Sarah Knafo, recently made a compelling case for the EU to prioritize building a Strategic Bitcoin Reserve over pursuing the European Central Bank’s digital euro project. In a video shared on X on December 17th, Knafo criticized the ECB’s plan for a centralized digital currency, citing concerns about financial freedom and overreach. Instead, she advocated for Bitcoin as a decentralized safeguard against inflation and poor monetary policies.
Knafo emphasized the strategic value of holding Bitcoin as a reserve asset, aligning the EU with global financial trends and enhancing resilience against economic uncertainty. She pointed to El Salvador as a prime example of Bitcoin’s potential, highlighting the nation’s decision to adopt Bitcoin as legal tender three years ago. Since then, El Salvador has seen its national Bitcoin investment double in value, improving economic security and empowering its citizens. Knafo urged EU nations to recognize Bitcoin’s strategic importance and follow El Salvador’s lead by building their reserves.
The lawmaker also referenced evolving attitudes towards Bitcoin in the United States, noting Federal Reserve Chair Jerome Powell’s characterization of Bitcoin as “digital gold” and President-elect Donald Trump’s shifting stance on the cryptocurrency. These developments underscore a growing recognition of Bitcoin’s potential as a reliable financial asset.
In cautioning against the ECB’s push for a digital euro, Knafo warned of a potential shift towards excessive centralized control. She called for a change in the paradigm, emphasizing the need to protect citizens from inflation and poor economic choices made by states. Instead of a digital euro, Knafo argued that Bitcoin offers a decentralized alternative that empowers individuals and promotes financial independence.
In conclusion, Knafo urged European leaders to adopt a forward-thinking financial strategy that embraces Bitcoin as a means to secure the EU’s economic future, enhance resilience, and uphold the principles of financial freedom. By prioritizing a Strategic Bitcoin Reserve, the EU can align itself with global financial trends and position itself for long-term success in an evolving digital landscape.