France Proposes National Bitcoin Reserve, Wants to Buy 2% of Bitcoin Supply

Imagine a nation looking beyond traditional gold reserves, recognizing a new form of digital sovereignty. This isn't a futuristic fantasy, but a real legislative push unfolding in France, where a groundbreaking proposal aims to cement Bitcoin's role as a strategic national asset. What if a major European power decided to back its financial future not just with conventional holdings, but with a significant stake in the world's premier decentralized digital currency?

France's Bold Vision for Bitcoin Sovereignty

France’s center-right UDR party has introduced a comprehensive crypto bill with an audacious core: establishing a national Bitcoin Strategic Reserve. The party, led by Éric Ciotti, envisions acquiring up to 2% of Bitcoin’s total supply—a staggering 420,000 BTC—over the next seven to eight years. This move isn't merely speculative; it’s framed as a calculated effort to strengthen France's financial sovereignty, treating Bitcoin as "digital gold" in an evolving global monetary landscape. This initiative invites us to consider a future where national treasuries diversify beyond the conventional, embracing assets that offer a different kind of resilience.

Strategic Acquisition and Innovative Funding

The proposed reserve wouldn't simply be amassed; its creation relies on a multi-pronged, innovative funding strategy. To manage this significant undertaking, the bill suggests forming a Public Administrative Establishment (EPA), mirroring France's existing framework for managing gold and foreign currency reserves. This institutional approach signals a serious, long-term commitment.

Funding mechanisms are equally inventive. France plans to leverage its surplus nuclear and hydroelectric energy to power public Bitcoin mining operations, turning an energy overproduction challenge into an economic opportunity. Further, the bill includes adapted taxation schemes for miners to foster domestic participation in the Bitcoin network. It also allows the nation to retain cryptocurrencies seized during legal proceedings, integrating them directly into the national reserve. Perhaps most intriguing, a quarter of funds from popular savings schemes, like the Livret A, would be allocated to daily Bitcoin purchases, potentially injecting around €15 million (approximately 55,000 BTC annually) into the market. Critically, citizens may also gain the ability to pay certain taxes directly in Bitcoin, pending constitutional approval, a significant step towards mainstream integration.

Embracing Stablecoins, Rejecting Centralized Digital Currencies

Beyond Bitcoin, the French proposal extends to euro-denominated stablecoins, advocating for their use in everyday payments. The bill suggests exempting transactions under €200 from taxation and social contributions, making micro-payments more accessible and efficient. This pragmatic approach highlights a desire to facilitate digital transactions while maintaining a clear preference for decentralized, permissionless innovation over centralized alternatives.

Crucially, the legislation explicitly pushes back against the notion of a European Central Bank-controlled digital euro (CBDC). The UDR party argues that such a centralized currency could pose significant threats to individual financial freedoms and personal privacy, articulating a strong stance against governmental control over digital money. This distinction underscores a philosophical alignment with Bitcoin’s foundational principles.

Fostering a Robust Domestic Crypto Ecosystem

To further support industry growth, the bill suggests adapting electricity taxation for mining operations through a progressive excise duty and flexible tariffs for data centers. This aims to create a more favorable environment for innovation within France. The proposal also encourages institutional adoption of Bitcoin and other crypto-assets through Exchange Traded Notes (ETNs) and calls for a re-evaluation of current European prudential rules that impose high-risk weightings on crypto assets, hindering their use as collateral for loans. These measures reflect a desire to position France as a leader in the evolving digital finance landscape, offering practical support for an emerging economy.

Navigating the Path Forward

While the ambition of this proposal is undeniable, its path through the French Parliament presents challenges. The UDR party currently holds a relatively small number of seats, meaning widespread cross-party support will be essential for adoption. However, regardless of the immediate legislative outcome, this initiative marks a pivotal moment. It represents a significant intellectual and political shift, demonstrating how national conversations are evolving from merely regulating cryptocurrencies to actively integrating them into national strategic frameworks.

For individuals and institutions alike, this French proposal serves as a powerful signal. It underscores the growing recognition of Bitcoin's unique properties—its scarcity, decentralization, and potential as a hedge against traditional financial instabilities. It compels us to consider how we, too, might adapt our financial perspectives and strategies in an era where digital assets are increasingly shaping global economic narratives. Are we preparing for a future where national treasuries include digital gold?