A French Member of the European Parliament (MEP), Sarah Knafo, recently made a big splash, suggesting the EU create a “Strategic Bitcoin Reserve.” Her goal? To boost the EU’s financial independence and fight inflation.
Why Bitcoin for the EU?
Knafo’s argument hinges on the idea that the EU is falling behind in the rapidly changing world of money. She pointed to El Salvador’s early adoption of Bitcoin as a success story, highlighting its significant gains. She also mentioned that even figures like former US President Donald Trump and Federal Reserve Chairman Jerome Powell are now talking about Bitcoin as a serious asset (“digital gold,” in Powell’s words).
Knafo argued that the EU’s current financial policies are creating massive deficits and fueling inflation. She warned against the potential for a digital euro controlled by the European Central Bank, painting a picture of a dystopian future where transactions could be easily blocked. Instead, she champions Bitcoin as a path to financial freedom.
A French Bitcoin Mining Boom?
Knafo sees a huge opportunity for the EU, particularly France, to become a major player in Bitcoin mining. She believes France’s nuclear energy could give it a massive advantage in this space, suggesting it’s a “trump card” to be played.
Tax Policy Changes Needed
Knafo also called for changes to how cryptocurrencies are taxed. She argued that current policies unfairly punish crypto holders who took significant risks to build their wealth. She believes that the government’s own deficits are the real drivers of inflation and economic instability.
In short, Knafo’s proposal is a radical one, urging a complete shift in EU financial policy towards embracing Bitcoin and decentralized finance. At the time of her speech, Bitcoin was trading at $106,947.
