EU's Bold Move: French MEP Proposes Strategic Bitcoin Reserve to Combat Inflation

Summary:

Sarah Knafo urges the EU to adopt a Strategic Bitcoin Reserve.
Cites El Salvador as a successful example of Bitcoin adoption.
Critiques current EU financial strategies as ineffective.
Warns against the totalitarian tendencies of the European Central Bank.
Calls for support of the Bitcoin mining sector in the EU.

French Member of the European Parliament (MEP) Sarah Knafo has taken the stage to advocate for the European Union (EU) to implement a 'Strategic Bitcoin Reserve'. This initiative aims to enhance financial autonomy and address inflationary pressures affecting member states.

Who is Sarah Knafo?

Knafo is a French magistrate and member of the Cour des Comptes, with a background in public service and political advising. Since her election to the European Parliament in 2024, her influence has grown significantly.

Why The EU Needs A Strategic Bitcoin Reserve

In her compelling address, Knafo highlighted global examples such as El Salvador, which has embraced Bitcoin since 2021. She pointed out that this early adoption has led to significant capital gains for the country, which have been used to enhance its security and sovereignty. Knafo criticized the EU's current financial strategies, claiming they render member states vulnerable in a rapidly evolving monetary landscape.

“El Salvador's move has yielded significant capital gains—resources that bolster both the security and sovereignty of the country,” Knafo stated.

Knafo also referenced Donald Trump's plans for a strategic Bitcoin reserve in the United States, suggesting that the EU is lagging behind in this regard.

The Case Against Current Policies

Knafo expressed concerns about the European Central Bank's approach to monetary policy, particularly regarding a potential digital euro. She warned against a future where bureaucrats could control financial transactions with ease, calling for a rejection of totalitarian tendencies in the EU's financial policies.

Advocating for Bitcoin Mining

Knafo proposed that the EU should support a thriving Bitcoin mining sector, leveraging France's nuclear energy infrastructure to gain a competitive edge. She emphasized the need to adjust current taxation policies to support cryptocurrency holders, arguing that existing government deficits contribute to inflation and economic instability.

At press time, Bitcoin is trading at $106,947.

Bitcoin price
BTC price hovers around $107,000, 1-week chart | Source: BTCUSDT on TradingView.com