EU urged to follow El Salvador’s lead with Bitcoin reserves by European MP

European MP Sarah Knafo advocates for Bitcoin as a safeguard against centralized digital currency risks.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

European Union Member of Parliament Sarah Knafo has urged the bloc to prioritize a Strategic Bitcoin Reserve instead of moving forward with the European Central Bank’s (ECB) digital euro project.

In a Dec. 17 video shared on X, Knafo criticized the ECB’s plan for a centralized digital currency, arguing it risks financial freedom and overreach. Instead, she advocated for Bitcoin as a decentralized safeguard against inflation and poor monetary policies.

Knafo stated that a strategic Bitcoin reserve would align the EU with global financial trends while fostering resilience against economic uncertainty.

Bitcoin as a strategic asset

Knafo wrote:

“NO to the digital euro. YES to a strategic reserve of BITCOIN.”

The lawmaker pointed to El Salvador as a prime example of Bitcoin’s potential. Despite international skepticism, El Salvador adopted Bitcoin as a legal tender three years ago and has since seen its national Bitcoin investment double in value.

Knafo noted that this financial gain has improved economic security and empowered citizens, offering a model that European countries could replicate. She urged EU nations to recognize Bitcoin’s strategic importance and follow El Salvador’s lead by building their reserves.

The lawmaker also referenced shifting attitudes in the United States. Federal Reserve Chair Jerome Powell’s description of Bitcoin as “digital gold” and President-elect Donald Trump’s evolving stance highlight growing recognition of BTC’s potential as a reliable financial asset.

Protecting financial freedom

Knafo warned that the ECB’s push for a digital euro signals a move toward excessive centralized control.

She stated:

“It is time to change the paradigm. It is 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 European Central Bank, which wants to impose a digital euro entirely in its hands.”

Instead, she argued that Bitcoin offers a decentralized alternative, empowering citizens and fostering financial independence.

Knafo concluded by calling on European leaders to adopt a forward-thinking financial strategy. She argued that Bitcoin would allow the EU to secure its economic future, strengthen resilience, and uphold the principles of financial freedom.

Mentioned in this article