On July 3, a landmark cryptocurrency bill was introduced in the French National Assembly by Éric Ciotti, leader of the center-right Union of the Right and Centre (UDR) party. The bill, the first of its kind in France, proposes a national Bitcoin Strategic Reserve, positioning the cryptocurrency as 'digital gold' to strengthen financial sovereignty.
France's First Comprehensive Crypto Legislation
The legislation, far from being approved, calls for France to acquire up to 2% of Bitcoin's total supply — roughly 420,000 BTC — over the next seven to eight years, according to the bill and journalist Gregory Raymond. To manage the reserve, a Public Administrative Establishment (EPA) similar to France's gold and foreign-currency holdings would be created.
Bitcoin Strategic Reserve: Scale, Funding, and Timeline
Funding comes from multiple sources. Surplus nuclear and hydroelectric energy would power public Bitcoin mining operations, with adapted taxation for miners to encourage domestic participation. Earlier in July, French lawmakers submitted a proposal to convert surplus electricity into economic value through Bitcoin mining, a five-year experimental program allowing energy producers to use excess power for mining. This addresses France's recurring energy overproduction issue, where producers were forced to sell surplus electricity at a loss. The new bill also allows France to retain crypto seized during legal proceedings, and a quarter of funds from popular savings schemes (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.
Stablecoin Payments and Anti-CBDC Stance
The bill emphasizes 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 centralised CBDC could threaten financial freedoms and personal privacy.
Institutional Adoption and Regulatory Adjustments
To support industry development, the legislation proposes adapting electricity taxation for mining through a progressive excise duty and flexible tariffs for data centers. It 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 their use as collateral for 'Lombard' loans.
Political Outlook: Ambitious but Uphill Battle
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. Nevertheless, the proposal has already sparked debate on sovereign bitcoin adoption in Europe, potentially serving as a policy blueprint for other nations. Whether France will become the first European country to hold Bitcoin as a strategic asset remains highly uncertain.