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

A pro-crypto bill will be tabled today in the French Parliament by the center-right Union of the Right and Centre (UDR) party, led by lawmaker Éric Ciotti, marking the first time such a comprehensive legislative proposal on cryptocurrency has been introduced in France. 

The initiative calls for a national Bitcoin Strategic Reserve and aims to position the cryptocurrency as a form of “digital gold” to strengthen financial sovereignty.

The proposed legislation would see France aim to acquire up to 2% of Bitcoin’s total supply — roughly 420,000 BTC — over the next seven to eight years, according to journalist Gregory Raymond.

To manage the reserve, the bill envisions the creation of a Public Administrative Establishment (EPA), similar in structure to France’s gold and foreign-currency holdings.

Funding for the Bitcoin reserve would come from multiple sources. Surplus nuclear and hydroelectric energy would power public Bitcoin mining operations, with adapted taxation for miners to encourage domestic participation.

Back in July, French lawmakers submitted a proposal to convert surplus electricity into economic value through Bitcoin mining. The bill outlined a five-year experimental program allowing energy producers to use excess power — particularly from nuclear and renewable sources — for mining. 

The July initiative aimed to tackle France’s recurring issue of energy overproduction, as producers were often forced to sell surplus electricity at a loss due to limited storage. The proposal described this as an “unacceptable economic and energy loss.” 

This new bill would also allow France to retain crypto seized during legal proceedings, and a quarter of funds collected via popular savings schemes, such as the Livret A and LDDS, would be allocated to daily Bitcoin purchases — approximately 15 million euros per day, or 55,000 BTC per year. 

Pending constitutional approval, citizens could also pay certain taxes in Bitcoin.

France explores stablecoins for payments

The bill also emphasizes the use of euro-denominated stablecoins for everyday payments, recognizing them as a credible alternative to traditional payment networks. 

Transactions under €200 would be exempt from taxation and social contributions, and payment of taxes in euro stablecoins would be allowed. 

The proposal explicitly opposes a European Central Bank-controlled digital euro, arguing that a centralized CBDC could threaten financial freedoms and personal privacy.

To support industry development, the legislation proposes adapting electricity taxation for mining through a progressive excise duty and flexible tariffs for data centers. It also encourages institutional adoption of Bitcoin and other crypto-assets via Exchange Traded Notes (ETNs) and calls for revisions to European prudential rules, which currently impose high risk-weightings on certain crypto-assets, limiting the use of crypto as collateral for “Lombard” loans.

Despite its ambitious scope, the bill faces steep political hurdles. The UDR holds only 16 of 577 seats in the National Assembly, making adoption unlikely without broader support, per Raymond. 

This post France Proposes National Bitcoin Reserve, Wants to Buy 2% of Bitcoin Supply first appeared on Bitcoin Magazine and is written by Micah Zimmerman.