Sarah Knafo Calls for Bitcoin Reserve Over Digital Euro
Sarah Knafo, a French magistrate and newly elected member of the European Parliament, has called on the European Union to establish a strategic Bitcoin reserve. In a strongly-worded speech, Knafo voiced her opposition to the European Central Bank’s (ECB) plans to develop a “digital euro,” a central bank digital currency (CBDC) under consideration by the EU.
Knafo Advocates for Bitcoin Over CBDCs
During her address before the European Parliament, Knafo made it clear that she is firmly against the digital euro, proposing instead that Europe adopt a strategic Bitcoin reserve. “No to the digital euro, yes to a strategic Bitcoin reserve,” Knafo declared in a post on X, accompanied by a video of her speech. The call to action was rooted in her belief that the ECB’s efforts to impose a digital euro reflect “totalitarian temptations,” and that Europe should embrace Bitcoin’s decentralized nature instead.
A Call to Reject “Totalitarian” Central Bank Control
Knafo emphasized the importance of steering away from regulatory overreach in the crypto space. She warned against the ECB’s centralization of digital currency control, suggesting that the adoption of a digital euro would give European bureaucrats too much power over individuals’ financial freedom. “We do not want this dystopian world where a European bureaucrat will be able tomorrow to ban certain transactions or even exclude us from the banking system for a simple social media comment or an opinion that displeases,” Knafo asserted.
Her speech contrasted Europe’s regulatory approach to that of other global players, particularly El Salvador and the U.S. Under the leadership of President-elect Donald Trump, the U.S. has adopted a more crypto-friendly stance, while El Salvador has embraced Bitcoin as legal tender. Knafo pointed out that even Jerome Powell, Chairman of the U.S. Federal Reserve, referred to Bitcoin as “digital gold” in early December.
The ECB’s Ongoing Digital Euro Debate
The European Central Bank has been studying the concept of a digital euro for over four years. However, the EU has yet to reach a final decision on whether to launch the digital currency. In October 2020, the ECB published one of its first reports discussing the potential benefits and risks of a digital euro, sparking an ongoing examination of its viability. Despite this, concerns over privacy issues, the impact on private payment firms, and the potential for increased state control over financial transactions have led to debate among European regulators.
Knafo has strongly criticized Europe’s approach to crypto regulation, stating that local authorities have focused too heavily on taxation and regulation, rather than fostering innovation in the sector. She called for a paradigm shift, arguing that the European Union should protect its citizens from inflation and poor economic decisions made by national governments.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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