In a surprise move, French lawmakers proposed a historic bill to create a national bitcoin reserve and officially reject the European Central Bank’s (ECB) digital euro.
The France bitcoin reserve proposal, led by Éric Ciotti and the Union of the Right and Centre (UDR) party, is the most ambitious Bitcoin legislation ever in France. It suggests buying up to 420,000 bitcoin (BTC) — about 2% of the total supply — over the next 7 to 8 years.
If passed, France would be the first country in Europe to have a strategic bitcoin reserve, utilizing the scarce digital asset as a form of “digital gold” to strengthen national financial sovereignty.
The proposed law outlines a plan to accumulate 420,000 BTC, worth roughly $48 billion at current market prices. Funding for the reserve would come from several sources, including:
- Public bitcoin mining, powered by surplus nuclear and hydroelectric energy.
- Confiscated bitcoin from criminal proceedings.
- Daily bitcoin purchases financed by France’s popular savings schemes such as Livret A and LDDS, allocating up to 15 million euros per day.
- Potentially allowing tax payments in bitcoin, pending constitutional approval.
The bill also calls for the creation of a Public Administrative Establishment (EPA) to manage the bitcoin reserve, modeled after the body that oversees France’s gold and foreign currency holdings.
UDR leader Éric Ciotti highlighted that the proposal aims to secure France’s economic future.
In addition to supporting Bitcoin, French lawmakers have made a clear stand against the ECB’s proposed digital euro. Ciotti and his colleagues argue that a centralized digital currency would threaten privacy and financial freedom.
Related: Bitcoin & CBDC | Economic Freedom in an Emerging Monetary System
The resolution warns that a digital euro could allow authorities to track and freeze citizens’ funds, comparing the idea to China’s digital yuan. Lawmakers described it as “a major threat to fundamental individual freedoms.”
They also cautioned that letting citizens move deposits directly to the ECB could destabilize Europe’s banking system and concentrate power in one institution. “Such a concentration of power would be harmful to economic freedom. This is not the role of the ECB,” the resolution stated.
Instead, France’s proposal promotes euro-denominated stablecoins — digital tokens pegged to the euro — as a decentralized alternative for everyday payments. Transactions under €200 would be tax-exempt, and stablecoins could be used to pay taxes in the future.
Lawmakers believe the move would help diversify France’s foreign exchange reserves, reducing dependence on the U.S. dollar and global payment systems dominated by American firms.
Currently, over 90% of global stablecoins are pegged to the U.S. dollar. In contrast, euro-backed stablecoins account for less than $300 million in market capitalization. The proposal argues this imbalance leaves Europe overly dependent on U.S. companies such as Tether and Circle.
To address this, Ciotti’s plan calls on the European Commission to revise the Markets in Crypto-Assets (MiCA) regulation to make it easier for European banks to issue euro-backed stablecoins.
France’s central bank governor, François Villeroy de Galhau, recently echoed similar sentiments, warning that Europe’s delay in developing its own digital currencies could deepen its reliance on non-European systems.
The bill also focuses on boosting France’s growing digital asset sector. It proposes:
- Flexible electricity tariffs for mining operations.
- Tax incentives for data centers involved in bitcoin mining.
- Allowing Bitcoin and other digital assets to be included in Exchange Traded Notes (ETNs) and PEA investment accounts.
- Reducing prudential risk weights on digital-asset-backed loans to encourage collateralized lending.
Despite the excitement, the bill faces steep political hurdles. The UDR party holds only 16 of 577 seats in France’s National Assembly, meaning broader support will be needed for the proposal to advance.
