European regulator may create its own cryptocurrency reserve

Yesterday, on December 17, the European Parliament proposed to create a strategic bitcoin reserve. The initiative was voiced by Sarah Knafo, a representative of the Reconquista party. She emphasized the advantages of the first cryptocurrency, including its decentralized nature, limited supply, and growing popularity in the world. Knafo believes that bitcoin BTC $104,065.52 Bitcoin -0.58% Market capitalization $2.06 trillion VOL. 24 hours $2.98 billion can serve as a means of diversifying reserves and protecting against economic instability.

The MP compared the regulation of digital assets in the world, mentioning the legalization of bitcoin in El Salvador and the initiatives of the newly elected US President Donald Trump. She also recalled the words of US Federal Reserve Chairman Jerome Powell, who compared bitcoin to gold.

Knafo criticized the European Central Bank (ECB) for excessive control and called for a rethinking of the approach to cryptocurrencies. According to her, the ECB should accept the decentralized nature of bitcoin and say no to the digital euro, which she called a «totalitarian project.»

Interest in creating bitcoin reserves is growing worldwide. Similar initiatives have been presented in Brazil, Texas, and even at the federal level in the United States. However, not all politicians support this idea. For example, former U.S. Treasury Secretary Lawrence Summers called it «insanity.» Meanwhile, experts predict that the implementation of such plans could lead to a global race for dominance in the digital gold market.

Earlier, US lawmakers turned to cryptocurrency experts to help promote a legislative plan to create a strategic bitcoin reserve.