BTC reserves to save eurozone?

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25-12-2024 10:04

BTC reserves to save eurozone?

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Big changes are coming to the crypto world! Countries are gearing up to create their own BTC reserves. Could this be the start of a global digital race?

Sarah Knafo, a member of the Reconquista party in the European Parliament, believes EU nations must establish their own strategic Bitcoin reserves. On top of that, she opposes the digital euro.

Knafo highlighted Bitcoin’s charm, namely, its decentralization, popularity, and limited supply. She urged governments to use BTC to diversify reserves and hedge against economic uncertainty.

In her speech, Knafo compared how different countries regulate digital assets. She reminded everyone that El Salvador legalized Bitcoin and pointed to US President-elect Donald Trump’s program.

Let’s not forget that Trump also called for a national Bitcoin reserve. This was part of his election campaign. However, the implementation of these ideas might shake things up. Binance founder Changpeng Zhao warns that leading nations could jump into the digital race.

Knafo is not worried. In fact, she is convinced this initiative will benefit the US. Earlier, she quoted Jerome Powell, the Federal Reserve chair, who compared Bitcoin to precious metals. However, Knafo noted that European leaders are mostly focused on regulation, taxes, and stifling innovation.

Knafo believes the ECB should ease up on oversight and embrace BTC’s decentralized nature.

She thinks that it is time to change the paradigm and protect people from inflation and the poor economic choices of governments. She promotes the idea that people must resist the ECB’s totalitarian temptations to enforce a digital euro.

Christian Lindner, Germany’s former finance minister, once urged the Bundestag to adopt a BTC strategy to avoid missing out. In July 2024, lawmaker Joana Cotar criticized the German government for selling Bitcoin. Notably, Germany’s Federal Criminal Police Office sold 49,858 BTC for €2.6 billion ($2.88 billion) within a month.

In July, US Senator Cynthia Lummis introduced a bill to purchase 1 million BTC (about 200,000 BTC per year for five years) using the Fed’s gold reserves.

In mid-December, Texas lawmakers proposed creating a state-level Bitcoin reserve. Other US states are on the same track.

Sam Lyman, director of public affairs at Riot Platforms, believes a national BTC reserve will be a valuable geopolitical tool for the United States.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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