Strategic Bitcoin Reserve: A Call for EU’s Financial Autonomy
French Member of the European Parliament (MEP) Sarah Knafo has recently made headlines with her compelling speech advocating for the European Union (EU) to establish a “Strategic Bitcoin Reserve.” This initiative aims to foster financial independence and curb inflationary trends within the EU.
Sarah Knafo: A Voice for Financial Innovation
Sarah Knafo, who serves as a French magistrate and a member of the Cour des Comptes, has a notable background in public service and political consultancy. She is particularly recognized for her advisory role to right-wing Jewish presidential candidate Éric Zemmour. Since her election to the European Parliament in 2024, Knafo’s influence has steadily grown.
Advertisement Banner
The Rationale Behind a Strategic Bitcoin Reserve
In her parliamentary address, Knafo highlighted global precedents, such as El Salvador’s pioneering integration of Bitcoin and endorsements by figures like former US President Donald Trump and Federal Reserve Chairman Jerome Powell. These examples illustrate a burgeoning acceptance of cryptocurrencies among global institutions. Knafo pointed out that the EU’s current financial approaches leave its member states at a competitive disadvantage in an ever-evolving economic environment.
Global Examples of Bitcoin Adoption
“Three years ago, El Salvador’s president made the bold decision to embrace cryptocurrencies,” Knafo noted, referring to the country’s 2021 law that recognized Bitcoin as legal tender. “Initially criticized by political and financial institutions, today, his decision has resulted in a 100% gain.” She emphasized that El Salvador’s strategic move has led to substantial financial benefits, strengthening both the security and sovereignty of the nation.
Emerging Trends in Major Economies
Knafo acknowledged the strategic intentions of the United States, mentioning that “Donald Trump is planning to create a strategic Bitcoin reserve for the US.” Additionally, she cited Jerome Powell’s recent remarks on Bitcoin as “digital gold,” suggesting that major economies are increasingly embracing decentralized finance. In contrast, she critiqued the European Union for adhering to outdated regulatory frameworks that contribute to rising deficits and inflation.
A New Direction for EU Financial Policies
“We must avoid a dystopian future,” Knafo urged, criticizing the European Central Bank’s efforts to develop a digital euro. She warned against potential overreach, where EU bureaucrats might control financial transactions and even exclude individuals from the banking system based on social media activity.
Throughout her speech, Knafo advocated for a fundamental overhaul of EU financial policies: “It’s time to reject the authoritarian inclinations of the European Central Bank and embrace financial freedom.” She also proposed the expansion of Bitcoin mining operations within the EU, highlighting France’s nuclear energy capabilities as a unique advantage in establishing a competitive mining sector.
Reforming Taxation and Financial Stability
Knafo emphasized the need for tax policy reforms, urging lawmakers to cease taxing cryptocurrency holders, who have taken personal financial risks to amass their wealth. She argued that current government deficits exacerbate inflation and economic instability: “Deficits that lead to unchecked money creation foster inflation and chaos. It’s crucial to protect citizens from the damaging cycle initiated by the current system.”
At the time of her address, Bitcoin’s market value stood at approximately $107,000.
