Sarah Knafo Pushes for Bitcoin Reserve to Counter Inflation and CBDC Concerns in Europe

Sarah Knafo, a French lawmaker and prominent member of the far-right group Reconquête!, has sparked debate in the European Union with her call for the creation of a Bitcoin strategic reserve. Inspired by U.S. President-elect Donald Trump's bold crypto initiatives, Knafo is urging Europe to embrace Bitcoin as a safeguard against inflation and what she describes as poor economic governance.

Speaking in Brussels, Knafo declared, “It is time to protect our people from inflation and the poor economic choices of our states,” echoing her sentiments in a post on X (formerly Twitter). She also criticized the European Central Bank’s (ECB) plans for a central bank digital currency (CBDC), warning it could lead to a “dystopian world” of financial surveillance and social credit-style punishments.

“Betting on freedom means choosing Bitcoin,” she emphasized, positioning the cryptocurrency as a shield against state overreach.

U.S. Influence on Global Crypto Policy

Knafo’s speech comes as attitudes toward Bitcoin shift significantly in the U.S. Under Trump’s proposed policies, a Bitcoin strategic reserve would be created by repurposing $20 billion worth of seized BTC, transforming it into an investment vehicle for American citizens.

The crypto community is watching closely, with some advocating for the U.S. to actively purchase Bitcoin to expand this reserve. Binance co-founder Changpeng “CZ” Zhao recently predicted that such a move would force other nations to follow suit, noting, “If the U.S. is doing this, then every other country will have to do this.”

Challenges Ahead for a European Bitcoin Reserve

Despite Knafo’s rallying cry, her proposal faces steep political obstacles. Reconquête! holds just five of France’s 81 seats in the European Parliament, limiting her influence. Meanwhile, the ECB’s digital euro remains in the preparatory stages, with a decision on its future expected next year.

Critics argue that CBDCs could become tools for overregulation, enabling authorities to monitor transactions and impose restrictions on purchases like alcohol or airline tickets. Although the ECB promises a “cash-like level of privacy” for digital euro users, public skepticism remains high.

While Knafo’s vision for a European Bitcoin reserve may not gain immediate traction, it reflects a growing global debate on the role of cryptocurrencies in protecting individual freedoms and reshaping national economic policies. As Bitcoin’s influence rises on the geopolitical stage, calls like Knafo’s may eventually find a more receptive audience.