European MP calls for EU Bitcoin reserve as ECB pushes digital euro

European lawmaker Sarah Knafo has called for the European Union to establish a strategic Bitcoin reserve, while opposing the European Central Bank's (ECB) plan for a central bank digital currency (CBDC), the digital euro.

In a speech before the European Parliament, Knafo urged lawmakers to reject the digital euro and instead adopt Bitcoin.

“No to the digital euro, yes to a strategic Bitcoin reserve,” she said in an X post that included a video of her speech.

Knafo criticised the ECB, saying it was time to stop the "totalitarian temptations" of the bank.

She called for a move away from regulatory overreach in crypto and advocated for the decentralised nature of Bitcoin to be embraced.

Knafo also compared Europe’s regulatory approach to that of other regions, highlighting El Salvador’s Bitcoin adoption in 2021 and the crypto-friendly stance of President-elect Donald Trump’s incoming administration.

She pointed out that US Federal Reserve Chair Jerome Powell had referred to Bitcoin as “digital gold” in December.

However, Knafo criticised Europe's focus on regulation and taxation, saying local regulators have hindered innovation.

“It is time to change the paradigm. It is time to protect our people from inflation and the poor economic choices of our states. It is time to say no to the totalitarian temptations of the European Central Bank, which wants to impose a digital euro entirely in its hands,” Knafo stated.

Knafo warned against a future where a European bureaucrat could restrict transactions or exclude individuals from the banking system based on their views.

The ECB has been studying the digital euro for over four years but has yet to decide on its launch.

The ECB is expected to make a final decision on the digital euro by October 2025.

At the time of reporting, the price of Bitcoin (BTC) was $106,356.