EU Lawmaker Proposes Strategic Bitcoin Reserve, Citing El Salvador’s Success

Sarah Knafo, a French member of the European Parliament, has urged the European Union to establish a strategic Bitcoin reserve. At the same time, she firmly opposes the proposed "digital euro," a central bank digital currency (CBDC). No to Digital Euro, Yes to Strategic Bitcoin Reserve In a passionate speech delivered to the European Parliament, Knafo rejected the idea of the ECB’s digital euro, labeling it a tool for totalitarian control. Instead, she championed Bitcoin as a decentralized, freedom-affirming alternative.  "No to the digital euro, yes to a strategic Bitcoin reserve," Knafo wrote on X (formerly Twitter), accompanied by a video of her address.

Learning from El Salvador's Bitcoin Adoption In her speech, Knafo highlighted the success of El Salvador, where President Nayib Bukele made the controversial decision to adopt Bitcoin as legal tender in 2021. At the time, critics, including the political class and the IMF, ridiculed the move. However, El Salvador's bet on Bitcoin has paid off, showing over 100% return and providing hundreds of millions of dollars in security and sovereignty for the country. Furthermore, Knafo pointed to growing global interest in Bitcoin, noting that influential figures such as U.S. President-elect Donald Trump and Federal Reserve Chairman Jerome Powell are positioning themselves to take advantage of the cryptocurrency revolution. Powell has referred to Bitcoin as "digital gold," and the U.S. is exploring the possibility of a strategic Bitcoin reserve. Europe Falling Behind on Crypto Innovation Meanwhile, Knafo criticized the European Union for lagging behind in cryptocurrency adoption. She lamented that the EU continues to waste public funds, struggle with inflation, and stifle innovation through excessive regulation and taxation. In her speech, Knafo called for a paradigm shift in Europe, urging EU states to protect their citizens from inflation and the consequences of poor economic policies.  She particularly warned against the ECB's push for a fully controlled digital euro, fearing it could lead to a dystopian future where citizens are excluded from the financial system for expressing dissent or engaging in unpopular activities. Call to Develop Crypto Mining Industries In Europe Furthermore, Knafo emphasized the need for European nations to follow El Salvador's lead in building strategic Bitcoin reserves and developing local crypto mining industries. She pointed out that France, in particular, has the advantage of abundant nuclear energy, which could power a thriving cryptocurrency mining sector. Knafo further urged policymakers to reduce the tax burden on cryptocurrency holders. In conclusion, Knafo called for a return to the values of freedom and innovation, advocating for a future where Europe embraces cryptocurrencies as a means of economic independence and protection from inflation. "Let’s dare to be free," she concluded, "and stay true to the ambition of our civilization." Notably, the discussion around a strategic Bitcoin reserve has gained momentum since President-elect Donald Trump teased the idea at the latest Bitcoin Conference. Senator Cynthia Lummis has introduced a bill to this end, and lawmakers in states like Texas and Pennsylvania have presented the idea. Russian lawmakers are also considering the possibility.