French Lawmaker Proposes the European Union Create a Bitcoin Strategic Reserve to Follow the Steps of US President-elect Donald Trump

French lawmaker Sarah Knafo proposed that the European Union create a Bitcoin strategic reserve to follow the steps of US President-elect Donald Trump.

French lawmaker Sarah Knafo has proposed that the European Union create a Bitcoin strategic reserve, following the suggestion made by US President-elect Donald Trump.

Speaking in Brussels, Knafo highlighted the need to protect EU citizens from the consequences of poor economic policies and inflation:

She later clarified her stance on the matter, tweeting: “No to the digital euro. Yes to a strategic Bitcoin national reserve.”

NON à l’euro numérique ❌OUI à une réserve nationale stratégique de BITCOIN 🔥 pic.twitter.com/o886lk9uV8

Knafo's proposal comes amid the European Central Bank's (ECB) plans to introduce a central bank digital currency (CBDC). However, Knafo argued that such an initiative could lead to a “dystopian world” where financial transactions are closely monitored and individuals can be excluded from the banking system for making controversial statements on social media.

Her proposal garnered support from the crypto community, but not everyone shared her enthusiasm. For instance,っけっけ Deputy of the French National Assembly, expressed a contrasting view:

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Germany’s Ex-Finance Minister on Crypto Potential

In another development, Germany's ex-finance minister Christian Lindner slammed the government's inaction on capitalising on Bitcoin's potential, arguing that Germany faces competitive disadvantages:

Germany’s relationship with Bitcoin has been lackluster, to say the least. For example, the government sold over 50,000 BTC in the summer, which, given BTC's rise to $108K, would’ve netted them roughly $5B. Now, that's a shame.

How Feasible is a Bitcoin Reserve?

In the US, a Bitcoin national reserve would entail setting aside the BTC seized from criminal activities, valued at around $20 billion, as a long-term investment for the American public. But how feasible is a national Bitcoin reserve? It's a multifaceted concept with potential benefits (e.g., a hedge against inflation, economic stimulus, price appreciation) and challenges.

Several analysts remain skeptical for various reasons. First, the lack of a 60-seat Republican majority in the US Senate could pose a significant hurdle, as would the absence of crypto regulations and the traditional approach of the US government. Other considerations include storage costs, cybersecurity risks, and more.

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Only time will tell if the upcoming Trump administration will pursue this goal starting in 2025.