Strategic Bitcoin Reserve Proposed By French MEP To Bolster EU

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As a seasoned researcher with a background that spans across public service, politics, and finance, I find myself drawn to the bold and visionary proposal put forth by French MEP Sarah Knafo: the establishment of a Strategic Bitcoin Reserve within the European Union.

A prominent French representative in the European Parliament, Sarah Knafo, recently spoke out, advocating for the European Union (EU) to establish a “Strategic Bitcoin Reservation” as an integral aspect of its strategy to foster financial independence and counteract rising inflation rates.

A French magistrate and member of the Cour des Comptes, Knafo, has a history that encompasses service in the public sector and political consulting, with a significant focus on supporting right-wing Jewish presidential candidate Éric Zemmour. Since her election to the European Parliament in 2024, Knafo’s prominence in the public eye has been growing steadily.

Why The EU Needs A Strategic Bitcoin Reserve

In her address on the Parliament podium, Knafo referenced instances from around the world – specifically mentioning El Salvador’s early use of Bitcoin and influential figures like former U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell – to emphasize a growing trend towards institutional approval. She argued that the European Union’s current financial policies place its member states at a disadvantage in a swiftly changing monetary environment.

3 years ago, on the opposite side of the Atlantic, the president of El Salvador chose to invest his country’s funds in cryptocurrencies, as stated by Knafo, referring to the 2021 legal tender law of El Salvador. At that time, he faced criticism from the political community and the IMF. However, today, he has seen a return of 100%.

Highlighting what could have been a beneficial action for EU nations, Knafo pointed out that El Salvador’s decision has led to substantial financial returns—money that, according to her, has been utilized to strengthen both “the safety and independence” of the nation. Shifting focus to the USA, she conceded that “Donald Trump is planning to create a strategic Bitcoin reserve for the United States.

Knafo additionally referred to the public opinion of Federal Reserve Chairman Jerome Powell, stating that “Jerome Powell […] is now describing it as ‘digital gold.'” She presented these advancements as indicators that significant economies are adapting to decentralized finance, while “the European Union […] is piling up regrettably inflationary deficits,” with regulations she criticized as excessively restrictive.

Knafo cautioned against the possibility of a future, resembling a dystopia, that could result from the European Central Bank’s digital euro project. In this scenario, an EU bureaucrat might have the power to block specific transactions or even expel us from the banking system based on something we post on social media with just one click.

During her speech, Knafo advocated for a complete overhaul in the EU’s financial policy: “It’s high time we rejected the authoritarian inclinations of the European Central Bank, which seeks to solely control a digital euro […] Now is the moment to place our faith in liberty.

She went on to advocate for a flourishing Bitcoin mining sector in the EU, suggesting that France’s nuclear energy infrastructure could supply a competitive edge. “We, the French, hold the cards with our nuclear trump card,” she said, framing domestic power generation as an untapped enabler of large-scale mining operations.

Knafo additionally emphasized the importance of modifying existing taxation structures, suggesting legislators should reconsider imposing taxes on cryptocurrency holders. She highlighted that those who accumulate wealth through crypto-assets assume personal risks and stated that excessive government spending, leading to increased money creation, directly contributes to inflation and economic volatility. In her words, “Government overspending that triggers money production […] causes inflation, leading to disorder […] They should take measures to shield themselves from the unpredictable cycle you’ve set in motion.

At press time, Bitcoin traded at $106,947.

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2024-12-18 02:41