According to the proposed bill, France aims to purchase 2% of the total supply of Bitcoin, approximately 420,000 bitcoins, over the next seven to eight years. To achieve this goal, the bill outlines diversified funding sources, including mining with surplus electricity, liquidating confiscated assets, and allocating a portion of savings, while simultaneously advancing complementary tax and regulatory reforms.
France’s cryptocurrency sector has achieved a significant milestone as a supportive bill has been submitted to the French Parliament.
On October 29, media reports indicated that the UDR party, led by lawmaker Éric Ciotti, proposed the bill, advocating for the establishment of a national Bitcoin strategic reserve and granting it the strategic status of ‘digital gold’ to strengthen financial sovereignty.
According to journalist Gregory Raymond, cited by the media, under the proposed legislation, France aims to purchase 2% of the total Bitcoin supply, approximately 420,000 Bitcoins, over the next seven to eight years. The bill also plans to establish a dedicated public institution to manage this reserve, structured similarly to France’s existing gold and foreign exchange reserve management system.
The bill also proposes utilizing surplus nuclear and hydroelectric energy for public Bitcoin mining and allowing citizens to pay part of their taxes in Bitcoin.
Objectives and Funding Sources
To build the Bitcoin reserve, the bill outlines diversified funding sources.
Firstly, the bill suggests using France’s excess nuclear and hydroelectric power for public Bitcoin mining operations. This follows a proposal from July this year aimed at converting surplus electricity into economic value through Bitcoin mining to address the issue of ‘unacceptable economic and energy losses’ caused by the frequent need to sell excess electricity at discounted prices.
Secondly, the bill permits retaining cryptocurrencies confiscated in legal proceedings and incorporating them into the national reserve.
Finally, the proposal plans to allocate one-quarter of the funds raised through popular savings schemes such as Livret A and LDDS to daily Bitcoin purchases, amounting to approximately €15 million per day.
Incentive Mining and Institutional Participation
To support the development of cryptocurrencies, the bill also mentions a series of complementary policies. These include adjusting the electricity tax policy for cryptocurrency mining by implementing a progressive consumption tax and providing flexible electricity pricing for data centers.
Moreover, the bill encourages institutional investors to use Bitcoin and other crypto-assets through Exchange-Traded Notes (ETNs). At the same time, the proposal calls for revising Europe’s prudential regulatory framework. Current regulations impose higher risk weights on certain crypto-assets, which limits their use as collateral for ‘Lombard loans.’
However, the bill faces significant challenges. According to Gregory Raymond’s report, the UDR holds only 16 seats out of 577 in the National Assembly.
