Emily Walker
In a prominent speech, French MEP Sarah Knafo called on the European Union (EU) to establish a “Strategic Bitcoin Reserve” to enhance financial independence and tackle inflation challenges.
Knafo, a French magistrate with experience in public service and political advisory roles—especially known for working with right-wing candidate Éric Zemmour—has gained recognition since her election to the European Parliament in 2024.
The Necessity of a Strategic Bitcoin Reserve for the EU
During her address, Knafo referenced international examples, including El Salvador’s early adoption of Bitcoin and notable figures like former US President Donald Trump and Federal Reserve Chair Jerome Powell, to illustrate a growing trend of acceptance. She argued that current EU financial approaches disadvantage member states amidst a changing monetary environment.
Knafo highlighted the benefits that El Salvador has reaped, including substantial capital gains that support the nation’s security and sovereignty. She also mentioned that “Donald Trump will establish a strategic Bitcoin reserve for the United States,” indicating a forward movement towards cryptocurrency by major economies.
According to Knafo, Jerome Powell has also acknowledged Bitcoin’s significance, calling it “digital gold.” She interpreted these developments as evidence that leading economies are embracing decentralized finance, while the EU continues to grapple with inflation amidst stringent regulatory frameworks.
Knafo expressed concerns regarding the European Central Bank’s evolving role, warning against a future where bureaucrats might restrict transactions or exclude individuals from banking systems due to social media comments. “We don’t want this dystopian world,” she cautioned in regards to the digital euro.
She urged a complete overhaul of EU financial policies to reject the European Central Bank’s control over a digital euro, advocating instead for freedom: “It’s time to bet on freedom.”
Knafo proposed expanding Bitcoin mining in the EU and suggested that France’s nuclear energy capabilities would provide a competitive advantage. “We hold the cards with our nuclear strength,” she asserted, presenting domestic energy production as a key factor for potential large-scale mining growth.
Moreover, Knafo called for revisions to existing tax regulations, advocating for the cessation of taxes on cryptocurrency holders. She underscored the personal risks crypto-asset holders undertake to create wealth, attributing government deficits to inflation and economic turbulence: “Those deficits exacerbate inflation and disorder… Let people safeguard their interests from the turmoil you’ve sparked.”
As of now, Bitcoin is valued at $106,947.