EU Lawmaker Sarah Knafo Proposes Bitcoin Reserve to Replace Digital Euro
Bitcoin is increasingly recognized as a store of value and a hedge against inflation, prompting discussions about its potential role in national reserves alongside traditional assets like the US dollar and euro.
Knafo Calls for Bitcoin Reserve amid Regulatory Advancements
During a parliamentary meeting on December 17, Sarah Knafo, a member of the European Parliament, advocated for a "Bitcoin strategic reserve" within the EU. This comes as the EU implements the Markets in Crypto-Assets (MiCA) regulatory framework, which has not yet officially recognized Bitcoin as a reserve asset.
Knafo highlighted Bitcoin's decentralized nature, limited supply of 21 million, and increasing global adoption as reasons for governments to diversify their reserves and hedge against economic uncertainties.
BREAKING: 🇪🇺 European MP gives pro-#Bitcoin speech in the European Parliament calling for a "Strategic Bitcoin Reserve".
❌NO to the digital euro
✅ YES to a strategic reserve of BITCOIN 🔥 pic.twitter.com/NAO0nupol9— Bitcoin Archive (@BTC_Archive) December 17, 2024
Knafo referenced Federal Reserve Chair Jerome Powell, who likened Bitcoin to gold, asserting that it possesses qualities more similar to gold than the US dollar.
“People use bitcoin as a speculative asset… It’s just like gold, only it’s virtual, it’s digital. People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold,” he said at the DealBook Summit.
Knafo Opposes Digital Euro, Supports Bitcoin Reserve
Powell reaffirmed the Federal Reserve's focus on maintaining banking system stability when asked about Bitcoin's inclusion in US reserves. Despite this, Knafo supports Bitcoin as a strategic reserve for Europe and opposes the introduction of a central bank digital currency (CBDC), such as a digital euro, currently under consideration in the EU.
Knafo's speech prompted significant discussion within the crypto community, with supporters arguing that adopting Bitcoin as a strategic reserve could enhance Europe's competitive position globally.
“I genuinely believe Bitcoin as a strategic reserve would give Europe a massive competitive advantage over other global powers in the next decade,” one user commented.
Bitcoin as National Reserve: Global Momentum Builds
While debates continue regarding Bitcoin's effectiveness as an inflation hedge, some nations have adopted the digital asset. El Salvador and the Central African Republic (CAR) have recognized Bitcoin as legal tender for transactions within their borders.
On December 9, 21Shares, a financial services company, projected that Argentina may soon adopt Bitcoin as part of its sovereign reserves, indicating Bitcoin's potential as a reserve asset for central banks globally.