EU Lawmaker Sarah Knafo Supports Bitcoin Reserve Over Digital Euro

On December 17, European Parliament member Sarah Knafo spoke out, advocating for a "Bitcoin strategic reserve" within the European Union. She believes Bitcoin could act as a hedge against economic uncertainties, offering Europe a competitive edge in global finance.

Knafo’s Call for Bitcoin as a Reserve Asset

In her speech, Knafo highlighted Bitcoin’s decentralized nature, limited supply, and growing global use. These factors make Bitcoin an appealing option for diversifying reserves. 

Knafo referenced U.S. Federal Reserve Chair Jerome Powell, who compared Bitcoin to gold. Powell called Bitcoin “digital gold,” emphasizing its speculative nature. Knafo, however, sees Bitcoin as a stable asset with long-term potential for national reserves.

Currently, no EU country officially recognizes Bitcoin as a reserve asset. Knafo, however, is convinced that adopting Bitcoin would benefit Europe. She believes it would provide the EU with a significant competitive advantage.

Knafo Rejects Digital Euro, Supports Bitcoin

Knafo’s support for Bitcoin comes at a time when the European Union is exploring the idea of a digital euro. She firmly rejected the idea of a central bank digital currency (CBDC). Instead, Knafo argues that Bitcoin holds greater promise for Europe’s future.

While the EU works on regulatory frameworks like MiCA for crypto assets, Bitcoin’s role as a reserve asset is still uncertain. Some nations, like El Salvador and the Central African Republic, have already adopted Bitcoin as legal tender. 

On December 9, 21Shares predicted that Argentina might soon follow suit, adding Bitcoin to its national reserves. Though the debate continues, Knafo's position is clear: Bitcoin presents a unique opportunity for Europe’s financial strategy.