France is pushing a groundbreaking legislative proposal to establish a national Bitcoin reserve, aiming to secure 2% of the cryptocurrency’s global supply over seven years and challenging the European Union’s traditionally cautious stance on digital assets.
The center-right Union of the Right and Center (UDR) party, led by Deputy Éric Ciotti, is set to present the unprecedented bill to the French Parliament. This initiative is designed to bolster financial sovereignty and position Bitcoin as a strategic store of value, much like gold.
Under the plan, France intends to acquire approximately 420,000 Bitcoin within seven to eight years. This ambitious goal would be partly financed by leveraging the nation’s surplus nuclear and hydroelectric energy through public Bitcoin mining operations.
This approach follows a pilot program proposed last July by French legislators. That earlier plan sought to convert excess electricity generation into Bitcoin mining, mitigating losses from having to sell energy at negative prices or reduce production. Proponents then called this situation an “unacceptable economic and energy loss.”
The proposed legislation also explicitly rejects the concept of a Central Bank Digital Currency (CBDC) for the Euro. Critics of a digital euro express concerns over privacy and individual financial freedom.
Instead, the bill advocates for the widespread use of euro-denominated stablecoins for daily payments, presenting them as an efficient alternative to conventional financial networks. It proposes exempting transactions under USD 216 (EUR 200) from taxes and social contributions, and allowing citizens to settle tax obligations using stablecoins.
If approved, France would become the first European nation to adopt an active state-backed Bitcoin accumulation policy, drawing parallels to El Salvador’s strategy rather than aligning with its more conservative EU partners.
The legislative text outlines the creation of a Public Administrative Establishment (EPA) to manage the Bitcoin reserve. This entity would be structured similarly to those overseeing the country’s gold and foreign exchange reserves.
Further provisions include a fiscal reform to encourage national Bitcoin miners through adapted taxes and flexible data center fees. The state would also retain crypto assets seized in judicial processes.
Additionally, a quarter of the funds from popular national savings schemes would be allocated for daily Bitcoin purchases. This could translate to approximately USD 16.2 million (EUR 15 million) in daily Bitcoin acquisitions, totaling around 55,000 Bitcoin annually. The bill also suggests allowing citizens to pay certain taxes in Bitcoin, pending constitutional validation.
The initiative promotes institutional development within the crypto sector, including support for exchange-traded notes (ETNs). It also calls for a review of European prudential rules that currently penalize the use of crypto assets as collateral for Lombard loans.
Ciotti’s project aims to redefine the state’s relationship with digital money, envisioning a strategic role for Bitcoin akin to gold in the 20th century. Approval could cement France’s leadership in financial innovation and signify a paradigm shift in national reserve management and institutional digital asset adoption.