French lawmaker Sara Kunafo has proposed that the European Union establish a strategic Bitcoin reserve, following the example of US President-elect Donald Trump. Germany's former finance minister expressed similar concerns, lamenting missed opportunities in Bitcoin while the US made strides, with Germany selling more than 50,000 BTC in the summer instead of leveraging its potential value. pointed out the decision.
French lawmaker Sara Kunafo has proposed that the European Union create a Bitcoin strategic reserve fund, following the steps of US President-elect Donald Trump.
Speaking in Brussels, Knafo said EU citizens must be protected from inflation and poor economic policies.
It's time to protect our people from inflation and the state's poor economic choices.
Sarah Kunafo
She later reiterated her position on X, saying: “No to a digital euro. Yes to a strategic Bitcoin national reserve.”
Knafo spoke about the European Central Bank's (ECB) plans to introduce a central bank digital currency (CBDC), an initiative that would create a “dystopian world” where financial transactions would be heavily monitored and individuals risk being locked out of banking. It is argued that it can lead to. A system for making controversial statements on social media.
Although she received considerable support from the crypto community, not everyone agreed with her. For example, French Member of Parliament Mathias Renaud said:
It's a fashionable idea, but it hasn't yet been implemented in the United States (and even if it did, there would be monopoly risks).
Matthias Renaud
Related: Ripple launches stablecoin to boost XRP activity, will the coin rise further?
Germany's former finance minister calls for change
Similarly, former German Finance Minister Christian Lindner criticized the government's lack of action to exploit Bitcoin's potential, saying the country faces a competitive disadvantage.
The US will also take advantage of the advantages available in Bitcoin. Nothing is heard about this in the main debate in the German Bundestag. What an omission and what an opportunity we are missing.
christian lindner
Germany's relationship with Bitcoin is not only lackluster. For example, the government sold over 50,000 BTC in the summer. With BTC rising to US$108,000 (AU$170,000), the revenue could have been around US$5 billion (AU$790 million). That's a shame.
How viable are Bitcoin reserves?
Establishing a Bitcoin National Reserve in the United States would require US$20 billion worth of BTC seized from criminal activity to be held as a long-term investment for American citizens. But how viable is a national Bitcoin reserve? This is a complex idea with many potential benefits (such as hedging against inflation, economic stimulus, and price increases), but also challenges.
Some analysts are skeptical, and there are several reasons why. First, the lack of a 60-seat Republican majority in the U.S. Senate could be a major hurdle, not to mention the lack of regulatory laws regarding cryptocurrencies and the traditional approach of the U.S. government. There are also storage costs and cybersecurity risks.
Related: Aave, Link, Ondo Experiences Surge: Breaking Down This Week's Top Performers
Only time will tell whether the incoming Trump administration will work toward that goal starting in 2025.
