An EU-wide stablecoin initiative is receiving resistance across the union
European lawmaker Sarah Knafo has made a strong case for Bitcoin while criticizing the European Central Bank’s (ECB) push for a digital euro. Speaking before the European Parliament, Knafo called for the EU to establish a strategic Bitcoin reserve and reject the central bank digital currency (CBDC) currently being developed by the ECB.
In her address, Knafo described the digital euro as a tool that could lead to centralized control and potential overreach. She argued against what she termed the “totalitarian temptations” of the ECB, warning of a future where bureaucrats might control transactions or exclude individuals from the financial system over dissenting opinions. Instead, she emphasized Bitcoin’s decentralized nature as a safeguard for economic freedom and individual rights.
Knafo pointed to other nations embracing Bitcoin, such as El Salvador, and highlighted comments from US Federal Reserve Chair Jerome Powell, who recently referred to Bitcoin as “digital gold.” In contrast, she criticized Europe’s approach, which she said prioritizes regulation and taxation at the expense of innovation. According to Knafo, the EU needs to shift its focus to combating inflation and protecting its citizens from poor economic policies.
The ECB has been researching the concept of a digital euro since 2020, with plans to make a decision by 2025. However, concerns persist over privacy risks and potential disruptions to private payment systems. Knafo believes the introduction of a digital euro could pave the way for excessive control over financial activity, making the case for Bitcoin as a tool for financial liberty.
Knafo’s stance reflects a growing divide in Europe over digital currencies, with advocates like her pushing for decentralized solutions as an alternative to centralized digital assets controlled by government institutions.
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