European MP Advocates for Bitcoin Strategic Reserve
By: Eliza Bennet
In a recent announcement, European Union Member of Parliament, Sarah Knafo, has recommended the bloc to prioritize a Strategic Bitcoin Reserve over moving forward with the European Central Bank’s (ECB) digital euro project. Knafo, who vocalized her support for decentralization, articulated her concerns about the trajectory that the digital euro initiative could take, potentially jeopardizing financial freedom and increasing central control.
During her statements, Knafo pointed towards the example set by El Salvador. Three years ago, El Salvador took a daring step by adopting Bitcoin as legal tender. Despite an initial wave of international criticism, the country has reaped significant benefits, with the value of its national Bitcoin investment having doubled. This has not only improved the nation's economic security but also empowered its citizens, serving as a tangible model for how Bitcoin can be strategically leveraged.
Knafo emphasized Bitcoin as a strategic asset, noting that it aligns with global financial trends and offers a hedge against economic uncertainty. She cited the United States' shifting attitudes as evidence of Bitcoin’s potential. Federal Reserve Chair Jerome Powell labeled Bitcoin as "digital gold,” signifying its growing recognition as a valuable financial asset.
Arguing against the ECB's digital euro, Knafo expressed concerns about the potential for excessive centralized control. According to her, the move towards a centralized digital currency risks undermining public financial independence. Instead, Sarah Knafo advocates for a shift in financial paradigm, one that embraces Bitcoin's decentralized nature, empowering citizens and fostering an environment conducive to financial freedom.
In her appeal to European leaders, Knafo called for a future-focused financial strategy that would allow the EU to harness Bitcoin's potential to enhance economic resilience and secure financial freedom for its citizens. The proposal to follow El Salvador's lead in building Bitcoin reserves reflects a broader vision for aligning European financial practices with emerging global benchmarks in digital currency utilization.
