European MP Argues for Bitcoin Strategic Reserve, Says No to Digital Euro

2024-12-19 11:02:34 Primitive Reading

From decrypt by Connor Sephton

Sarah Knafo, a French lawmaker who's part of a far-right political group, Reconquête!, wants the bloc to copy U.S. President-elect Donald Trump's campaign promise by creating a Bitcoin strategic reserve.

Speaking in Brussels, she declared "it is time to protect our people from inflation and the poor economic choices of our states." She then echoed her remarks on X, formerly known as Twitter.

She also warned the European Central Bank's hopes of rolling out a CBDC could lead to a "dystopian world" where transactions are controlled and citizens are debanked for controversial comments on social media.

"It is time to bet on freedom," Knafo said.

Her speech comes as U.S. attitudes to Bitcoin undergo huge changes, with years of skepticism and regulatory uncertainty coming to an end.

Trump has unveiled plans to create a Bitcoin strategic reserve, meaning $20 billion worth of BTC that's been seized by criminals would be preserved as an investment for the American people.

Some in the crypto community want the president-elect to go even further by ordering the U.S. to buy Bitcoin for this stockpile.

Binance co-founder Changpeng "CZ" Zhao recently predicted this radical policy would be emulated around the world.

"This also has a knock-on effect to other countries in the world. If the U.S. is doing this, then every other country will have to do this," he said at the Bitcoin Middle East and North Africa conference last week.

It's unlikely Knafo's calls for a strategic Bitcoin reserve in Europe will get much traction—at least for now. Her political party, which translates to Reconquest, accounts for five of the 81 French seats in the European parliament.

And it's worth noting that a digital euro may not materialize either. While the ECB is currently in a "preparation phase" for such a CBDC, officials say a concrete decision on launching one will only be made next year.

Skeptics fear these digital assets could one day be used to snoop on consumers and advance government policies, such as by limiting purchases of alcohol, red meat and flights abroad.

That's despite the ECB stressing that its CBDC would be designed to "offer users a cash-like level of privacy for payments in physical shops and between individuals."

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