French MEP Sarah Knafo has called on the European Union to establish a “Strategic Bitcoin Reserve” to enhance financial independence and address inflation challenges. In her recent speech, she highlighted successful examples like El Salvador’s early Bitcoin adoption and the growing acceptance of cryptocurrencies in global markets. Knafo criticized current EU financial policies as restrictive, advocating for a shift towards more freedom in digital finance. She suggested that France’s nuclear energy resources could support a competitive Bitcoin mining industry, and urged lawmakers to rethink taxation on cryptocurrency holders. Knafo’s address emphasizes the need for the EU to adapt to the evolving financial landscape to avoid potential economic instability.
French MEP Sarah Knafo Calls for EU to Establish Strategic Bitcoin Reserve
In a bold move, Sarah Knafo, a French Member of the European Parliament, recently urged the European Union (EU) to create a “Strategic Bitcoin Reserve.” Her address highlighted the need for financial independence and the fight against rising inflation.
Knafo, who has a background in public service and political advising, rose to prominence in the European Parliament after her election in 2024. She draws on real-world examples to advocate for Bitcoin, pointing to El Salvador’s early adoption of cryptocurrency and influential figures like former President Donald Trump and Federal Reserve Chairman Jerome Powell.
Why the EU Needs a Bitcoin Reserve
During her speech, Knafo emphasized the advantages observed in countries like El Salvador, where Bitcoin has already started to yield impressive capital gains. “Three years ago, the president of El Salvador made a forward-thinking decision to invest in cryptocurrencies,” she noted, emphasizing the benefits seen today.
Knafo criticized the EU’s current financial policies, suggesting they leave member states vulnerable in a fast-changing economic environment. She voiced her concern over the EU’s inflation-driven deficits and the restrictive regulations governing cryptocurrencies, which she believes hinder innovation and financial freedom.
Her address also warned against a future where the European Central Bank might control citizens’ transactions through a digital euro. “We don’t want a world where a bureaucrat can limit our financial freedom,” she said, suggesting that the EU must pivot away from such control and explore the benefits of Bitcoin mining, particularly using France’s nuclear energy resources.
Knafo also raised concerns about the taxation of cryptocurrency holders, urging lawmakers to reconsider these policies. “Stop taxing cryptocurrency holders who take risks to build wealth,” she argued, pointing out the negative impact of government deficits on inflation and economic stability.
As Bitcoin continues to gain traction worldwide, Knafo’s call for a strategic Bitcoin reserve signals a potential shift in the EU’s financial policy direction. As of now, Bitcoin is trading around $106,947.
Tags: Sarah Knafo, European Parliament, Bitcoin Reserve, Cryptocurrency, EU Financial Policy, Inflation, El Salvador, Digital Euro, Financial Independence
What is the Bitcoin Reserve proposed by the French MEP?
The Bitcoin Reserve is a suggestion by a French Member of the European Parliament (MEP) to create a fund using Bitcoin. This fund aims to strengthen the European Union’s economic stability.
Why is the Bitcoin Reserve important for the EU?
It is believed that a Bitcoin Reserve could help the EU respond better to economic crises. By holding Bitcoin, the EU may increase financial security and diversify its assets.
How does Bitcoin work as a reserve asset?
Bitcoin is a digital currency that operates on a decentralized network. Its limited supply and increasing demand make it a potentially valuable asset for reserves, as it can hold value over time.
What are the potential risks of a Bitcoin Reserve?
The main risks include Bitcoin’s price volatility and regulatory uncertainty. The value of Bitcoin can change rapidly, which might make it difficult to rely on as a stable financial asset.
Are other countries using cryptocurrencies as reserves?
Yes, some countries, like El Salvador, have adopted Bitcoin as legal tender. Others are exploring the use of cryptocurrencies to diversify their reserves, but the approach varies widely.
