Within the first week of his inauguration, President Donald Trump signed an executive order that included a directive to evaluate the creation of a "strategic national digital assets stockpile." The Federal Reserve has also shunned plans to create a central bank digital currency, setting a conducive ecosystem for cryptocurrencies to grow.
However, the move has sharply contrasted with the policy of the European Central Bank, which ruled out adding digital assets to monetary frameworks.
One of the ECB's fiercest critics, Sarah Knafo, a European Parliament member from France, spoke with Benzinga about how Europe was missing out on an impending "revolution" by ignoring Bitcoin BTC/USD and clinging to inflationary fiat currencies.
Knafo belongs to the French-nationalist Reconquête party, which was founded in late 2021. She was elected to the European Parliament in 2024 and currently serves as the Vice-Chair of the Europe of Sovereign Nations Group.
The Fight Against “Totalitarian” ECB
The European lawmaker said Bitcoin was a response to the "galloping" inflation in Europe.
"Public deficit leads to monetary creation, which creates inflation, which leads to chaos. Because of these poor political choices, our traditional currencies have only collapsed for decades, while that of Bitcoin only strengthens," Knafo stated, aligning with the arguments of Bitcoin maximalists.
In a recent address to the European Parliament, Knafo slammed the idea of a digital euro and backed the creation of a strategic Bitcoin reserve.
"I am going to fight the digital euro, this totalitarian temptation of the ECB, by alerting public opinion," Knafo said. "I will do everything my status as a member of Parliament allows me to do."
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ECB, on the other hand, states on its website that the digital euro will provide a higher level of privacy than other digital payment systems and that the infrastructure provider won’t be able to connect transactions to individuals. The central bank declined to categorically respond to Knafo’s accusations.
Regarding Bitcoin, ECB President Christine Lagarde said last month that the leading cryptocurrency does not align with its standards for safety, liquidity, and regulatory compliance, and hence fails the reserve asset test.
It's worth noting that Poland has ruled out adding Bitcoin to its reserves, while another non-eurozone member, the Czech Republic, showed interest in exploring the idea.
The El Salvador Playbook
When asked if Bitcoin might become legal money alongside the euro, the lawmaker stated, “I believe that Bitcoin has the capacity to be an answer, without replacing traditional currencies.”
Knafo reserved special praise for El Salvador, the first country to adopt Bitcoin as a legal tender. "For the moment, El Salvador’s choice is visibly paying off and offers a very interesting and innovative growth driver."
Interestingly, President Nayib Bukele, under whose administration Bitcoin became a legal tender, admitted last year that the cryptocurrency hasn’t witnessed widespread adoption as expected.
Michael Saylor Is A Genius, The U.S. A Pioneer
Knafo acknowledged the pro-cryptocurrency pivot in the U.S. under Trump, contrasting it with the "slowness" of European institutions.
"Historically, the United States has had the ability to scale up at the forefront of innovation, while the EU wastes time regulating before innovating. This freedom allows them to be pioneers," she said.
Knafo also talked about her recent meeting with Michael Saylor, the co-founder of the world's largest Bitcoin holding company, Strategy.
"This meeting was absolutely fascinating, and Michael is a genius entrepreneur. We talked about Bitcoin but also about many other future topics such as AI, French nuclear power, and the future of Europe.”
Photo Courtesy: Sarah Knafo
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