In a significant move within the European Parliament, a call has been made to acknowledge Bitcoin as a vital sovereign hedge asset. This development underscores the growing recognition of Bitcoin’s potential to safeguard economic interests in uncertain times.
Advocacy by French Magistrate Sarah Knafo
Sarah Knafo, a prominent French magistrate and a member of the European Parliament since June, has emerged as a vocal proponent of Bitcoin. In a compelling speech, she urged the European Union to establish a strategic Bitcoin reserve. Knafo also expressed strong opposition to the proposed “digital euro,” a central bank digital currency (CBDC) being developed by the European Central Bank (ECB). In a bold statement shared on social media, she declared, “No to the digital euro, yes to a strategic Bitcoin reserve.”
Citing Global Examples: El Salvador and the United States
Knafo highlighted the transformative decisions made by global leaders such as the President of El Salvador, who invested significantly in Bitcoin despite facing skepticism from political peers and the International Monetary Fund (IMF). This strategic move has resulted in a substantial return on investment, providing hundreds of millions of dollars for the citizens of El Salvador. The global landscape is rapidly evolving, with countries preparing to harness the potential of decentralized finance.
In the United States, similar sentiments are taking shape. The previous administration had laid the groundwork for creating a strategic Bitcoin reserve. Knafo pointed out how U.S. Federal Reserve Chair Jerome Powell has likened Bitcoin to digital gold, as the cryptocurrency continues to reach unprecedented heights. With Bitcoin’s meteoric rise, Knafo posed a challenging question: What steps is the European Union taking to remain competitive?
Urgent Call for a Paradigm Shift
Knafo’s address served as a clarion call for the European Union to reconsider its financial strategies. She emphasized the need to curtail unnecessary expenditures and address escalating deficits. The European Union’s stringent regulations and high taxes are perceived as obstacles to progress. She urged a rejection of the European Central Bank’s digital euro, which she argues could grant excessive control over financial transactions to bureaucrats.
Instead, Knafo advocated for embracing the freedom that Bitcoin offers by investing in the cryptocurrency, building national reserves, and supporting the burgeoning mining industry. She highlighted France’s advantage in nuclear power, suggesting it could be leveraged to benefit cryptocurrency holders who have accumulated savings through intelligence and risk-taking.
“It’s time to change the paradigm. It’s time to protect our people from inflation and the poor economic choices of our states. It is time to say no to the totalitarian temptations of the ECB, which wants to impose a fully controlled digital euro. It’s time for our states to invest in Bitcoin to build national strategic reserves. It’s time to develop the mining industry,” Knafo passionately remarked.
Conclusion
The advocacy for a strategic Bitcoin reserve in the European Parliament marks a pivotal moment in the ongoing discourse surrounding digital currencies. As Bitcoin continues to establish itself as a formidable financial asset, the calls for strategic reserves signify a broader shift towards embracing decentralized finance as a safeguard against economic uncertainties.
