The European Parliament has proposed creating a strategic reserve in bitcoins
Date: 2024-12-18 Author: Henry Casey Categories: IN WORLD
Sarah Knafo emphasized that the decentralized structure, limited volume of issue, and growing use of bitcoin make it attractive for economic stability. She suggested considering the first cryptocurrency as a tool for diversifying assets and reducing risks in the face of economic uncertainty.
In her speech in the European Parliament, Knafo noted international examples of cryptocurrency integration. Among them are the recognition of bitcoin as an official means of payment in El Salvador and the US plans to implement a bitcoin strategy. She also recalled the statement by Federal Reserve Chairman Jerome Powell, who compared bitcoin to gold.
The politician expressed dissatisfaction with the fact that European authorities pay more attention to regulations and taxes than to supporting innovation. She believes that the European Central Bank must adapt to the decentralized nature of Bitcoin.
“It’s time to rethink our approach. We have a responsibility to protect citizens from inflation and economic miscalculation. Europe must not give in to pressure from the ECB to introduce a digital euro,” Knafo said.
Similar ideas are being discussed in other countries. Former German Finance Minister Christian Lindner recently called on the Bundestag to develop a Bitcoin strategy, noting missed opportunities. His statement followed criticism of the German government for selling almost 50,000 BTC in July 2024, which raised €2.6 billion.
Europe is not alone in its interest in creating Bitcoin reserves. In Brazil, MP Eros Biondini has proposed a similar initiative, while in the US, Senator Cynthia Lummis has introduced a bill to buy one million BTC over five years using the Fed’s gold reserves.
The strategy is also supported in some states. Texas has proposed creating a state-level Bitcoin reserve, while other regions are working on their own projects.
Despite the support of many politicians, former US Treasury Secretary Lawrence Summers has sharply criticized such plans, calling them “madness.” However, experts believe that a national Bitcoin reserve could become an important geopolitical tool.
Binance founder Changpeng Zhao predicts that the implementation of such plans will trigger a global race among states for dominance in the “digital gold” market.
