Today, the French Parliament will see the introduction of a pro-crypto bill by the center-right Union of the Right and Centre (UDR) party, spearheaded by lawmaker Éric Ciotti. This marks a significant milestone as it’s the first extensive legislative proposal concerning cryptocurrency in France.
The initiative proposes the establishment of a national Bitcoin Strategic Reserve, aiming to recognize the cryptocurrency as a form of “digital gold” to enhance financial sovereignty.
According to journalist Gregory Raymond, the proposed legislation envisions France acquiring up to 2% of Bitcoin’s overall supply—approximately 420,000 BTC—over a timeline of seven to eight years, as reported.
The legislation includes plans for a Public Administrative Establishment (EPA) to manage the reserve, mirroring the structure used for France’s gold and foreign-currency reserves.
Funding for the Bitcoin reserve will be sourced from various avenues. Public Bitcoin mining operations would utilize surplus nuclear and hydroelectric energy, accompanied by adjusted taxation for miners to boost domestic engagement.
Earlier in July, French lawmakers proposed a strategy to convert excess electricity into economic gains through Bitcoin mining. This bill detailed a five-year experimental initiative permitting energy producers to utilize surplus power—especially from nuclear and renewable sources—for mining purposes.
The July proposal aimed to address France’s ongoing challenge of energy overproduction, where producers often had to sell surplus electricity at a loss due to limited storage capacity. This situation was described as an “unacceptable economic and energy loss.”
This new legislation would further enable France to retain cryptocurrencies seized during legal actions, and it stipulates that a quarter of funds collected from popular savings accounts, like the Livret A and LDDS, would be directed to daily Bitcoin purchases—around 15 million euros daily, or 55,000 BTC annually.
Once constitutional approval is obtained, citizens may also be allowed to pay certain taxes in Bitcoin.
France explores stablecoins for payments
The proposal also highlights the adoption of euro-denominated stablecoins for daily transactions, acknowledging them as a viable alternative to existing payment systems.
Transactions below €200 would be exempt from taxes and social contributions, and payment obligations in euro stablecoins would be permitted.
The proposal takes a clear stance against a digital euro controlled by the European Central Bank, claiming that a centralized CBDC could endanger financial freedoms and individual privacy.
To promote industry development, the legislation suggests revising electricity taxation for mining through a progressive excise tax and flexible tariffs for data centers. It also encourages institutional adoption of Bitcoin and other crypto-assets via Exchange Traded Notes (ETNs), while advocating for amendments to European prudential regulations that currently impose high risk-weightings on certain crypto-assets, limiting their use as collateral for “Lombard” loans.
Despite its ambitious nature, the bill is expected to encounter significant political challenges. The UDR controls only 16 of the 577 seats in the National Assembly, rendering its passage improbable without wider support, according to Raymond.
