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- The MEP has argued for the bloc to set up a strategic Bitcoin reserve.
- Countries, including the United States and Japan, are also exploring this move.
Sarah Knafo, a member of the European Parliament, has recently put forward a proposal for Europe to create a strategic Bitcoin reserve.
This development comes amid optimism about the establishment of a Bitcoin reserve in the United States, following Donald Trump’s campaign promise. The MEP’s proposal has contributed to the ongoing Bitcoin (BTC) rally, with the price reaching a new all-time-high.
The proposal for a Bitcoin reserve by the European lawmaker
In Brussels, Sarah declared: “It’s time to protect our people from inflation and the bad economic choices of our states.”
Further in line with her position on the leading cryptocurrency, the 31-year-old lawmaker wrote on X, “NO to the digital euro. YES to a strategic national reserve of BITCOIN.”
NON à l’euro numérique ❌
OUI à une réserve nationale stratégique de BITCOIN 🔥 pic.twitter.com/o886lk9uV8
– Sarah Knafo (@knafo_sarah) December 16, 2024
Sarah also warned that the European Central Bank’s plans to introduce a central bank digital currency (CBDC) could result in a “dystopian world.” She described this as a world where transactions are regulated and people are suspended from banking for making controversial posts on social media.
The European lawmaker also praised El Salvador’s decision to invest in BTC in recent years. She pointed out that El Salvador’s current holdings showed an added value of over 100%, despite initial criticism from industry stakeholders such as Ethereum founder Vitalik Buterin.
Although Sarah supports El Salvador’s Bitcoin investment strategy, she has opposed the European Central Bank’s proposal to introduce a digital euro. She argued that Europe should focus on economic freedom by investing in Bitcoin instead of introducing the digital euro. Therefore, she suggested that the EU consider making Bitcoin a national strategic reserve like in the US.
Sarah’s speech comes in the wake of a global shift towards Bitcoin, with several countries, lawmakers and institutions increasing their focus on the leading cryptocurrency. The race has begun following Donald Trump’s election victory and his vocal advocacy for the crypto market, especially Bitcoin.
Furthermore, Trump recently revealed plans to create a Bitcoin strategic reserve in the United States. This means that the country will preserve $20 billion worth of BTC seized from criminals as an investment for the American people. Some members of the crypto community even want Trump to go further by ordering the US to buy Bitcoin beyond this reserve.
How Bitcoin is reacting globally
The optimism surrounding a potential US Bitcoin Strategic Reserve under Donald Trump’s presidency has started a bullish price rally for BTC.
Reinforcing this optimism are the latest findings from Europe and even Japan. BTC reached its all-time-high of $107,780.58 early in the day before stabilizing at the current $106,344 at the time of writing this. In the last 24 hours, BTC rose 2.13% and 10.3% in the last seven days.
The 24-hour trading volume increased by 2.5% to over $77 billion, indicating investors’ renewed confidence.
Experts predict that the rally will continue in the days to come. Specifically, veteran trader Peter Brandt predicted that BTC price will soon reach $125,000. Meanwhile, the robust inflows in the US Spot Bitcoin ETF indicate the growing institutional interest in the asset, according to a CNF report.
