France introduces a bill to create a strategic bitcoin reserve

Key points:

• The bill proposes creating a national bitcoin reserve of 420 000 BTC over 7–8 years.
• Funding is planned to come from state mining and the use of surplus nuclear and hydroelectric power.
• The document also provides for support for euro stablecoins and reform of mining taxation.

France may become the first European country to officially include bitcoin in its national reserves. According to the document presented today in parliament by the Union de la Droite Republicaine (UDR) party led by Eric Ciotti, the state should create a public administrative institution (EPA) to manage the strategic bitcoin reserve.

The proposal provides for the purchase and mining of 2% of the total volume of bitcoins — about 420 000 BTC over 7–8 years. As journalist Gregory Raymond noted, this is “the first time such a comprehensive text on the subject has been proposed in France.”

“The aim is to build a form of “national digital gold” to diversify foreign exchange reserves and protect the country’s financial sovereignty,” according to a text published by Raymond in X.

Source: x.com

How do they plan to finance the bitcoin reserve

The main source of funding proposed is public bitcoin mining using surplus nuclear and hydroelectric power, as well as tax breaks for miners. In addition, it is planned to:

• allocate part of the funds from the Livret A and LDDS state savings accounts to daily BTC purchases (about 15 million EUR per day);
• keep confiscated bitcoins instead of selling them at auction;
• consider the possibility of paying taxes in BTC (subject to constitutional approval).

Support for stablecoins and MiCA reform

The bill also includes measures to encourage euro stablecoins, proposing to allow payments of up to 200 EUR per day without taxes and social security contributions. The authors of the initiative call for the MiCA rules to be relaxed in order to simplify the issuance of stablecoins by European banks and companies. They also oppose the introduction of a digital euro (CBDC), considering it a threat to financial freedoms.

Although the chances of the bill being passed are slim, as the UDR party has only 16 seats in parliament, its symbolic significance cannot be overestimated. According to Raymond, the document reflects the party’s desire to position itself as a defender of the French crypto industry and a follower of the US “bitcoin strategy” after Donald Trump’s success.