EU Lawmaker Rejects Digital Euro, Advocates for Bitcoin Reserve
EU Lawmaker Proposes Bitcoin Reserve, Criticizes Digital Euro as ‘Surveillance Step’; Cites Global Crypto Trends.
Key Takeaways
- EU lawmaker Sarah Knafo has proposed a Bitcoin strategic reserve for the European Union.
- Knafo criticized the digital euro, labeling it a step toward financial overreach and surveillance.
- She highlighted global trends in crypto adoption, including El Salvador’s pro-Bitcoin policies and the U.S.’s emerging crypto-friendly agenda.
Speaking to European lawmakers in Brussels, French legislator Sarah Knafo advocated for the European Union (EU) to adopt a Bitcoin strategic reserve to safeguard its citizens from economic instability and inflation.
Knafo criticized existing economic policies, emphasizing the need for decentralized alternatives like Bitcoin. “It is time to protect our people from inflation and the poor economic choices of our states,“ the lawmaker stated in her address.
Europe's Crypto Wake-Up Call as Parliament Member Demands Bitcoin Reserves
The EU lawmaker doubled down on her position via X (formerly Twitter), sharing a video of her speech and writing: “No to the digital euro. Yes to a strategic Bitcoin national reserve.”
Knafo’s proposal comes when Bitcoin continues gaining global recognition as a hedge against inflation, often called “digital gold.”
In her speech, Knafo took a firm stance against the European Central Bank’s (ECB) proposed central bank digital currency (CBDC), the digital euro.
She warned that the initiative could lead to a “dystopian world” where financial transactions are heavily monitored, and individuals face exclusion from the banking system for expressing controversial views.
The ECB has been studying the concept of a CBDC for over four years. While proponents argue it could modernize Europe’s financial system, critics like Knafo see it as a tool for government overreach.
The ECB aims to make a final decision on the digital euro by October 2025, but concerns over privacy risks, competition with private payment systems, and potential misuse continue to divide opinions.
Knafo’s speech drew comparisons between Europe’s cautious stance and global crypto adoption trends.
She pointed to El Salvador’s groundbreaking decision to adopt Bitcoin as legal tender in 2021 and the United States’ evolving pro-crypto policies.
Notably, U.S. President-elect Donald Trump’s incoming administration has outlined a crypto-friendly agenda, and Federal Reserve Chair Jerome Powell recently referred to Bitcoin as “digital gold.”
Mixed Reactions from European Lawmakers
Knafo’s bold proposal has sparked significant debate across Europe.
While she has gained substantial support from the crypto community, some lawmakers remain skeptical.
Matthias Renault, a Deputy in the French National Assembly, dismissed her idea as “fashionable” and warned of monopolistic risks if the EU adopted a Bitcoin reserve.
Similarly, Germany’s former finance minister Christian Lindner used the avenue to criticize the German government for its lack of vision, stating:
“The U.S. will use the advantages that we could also have with Bitcoin. I hear nothing about this in a central debate in the German Bundestag. What an omission, what opportunities are being lost to us.”
Despite the criticism, Knafo’s speech has reignited discussions around Bitcoin’s role in Europe’s financial future.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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