France Ponders Over Crypto-Friendly Laws, May Include Bitcoin in Reserves

Key Points

• France is contemplating a Bitcoin and crypto-friendly bill, including a Strategic Bitcoin Reserve.
• The UDR party supports the bill, marking the first comprehensive Bitcoin and crypto proposal in the country.

The French Parliament is reportedly examining a bill that supports Bitcoin and cryptocurrency. The bill, which includes a Strategic Bitcoin Reserve, is expected to be introduced today.

This proposal is backed by the UDR party, led by Eric Ciotti. It’s the first time such an extensive text on Bitcoin and crypto has been suggested in France.

The co-founder of The Big Whale onchain finance guide, Grégory Raymond, was the first to report this news.

Main Proposals in the French Bill

The bill includes several key proposals for Bitcoin and cryptocurrency:

Creation of a French Strategic Bitcoin Reserve

The bill’s text suggests the establishment of a Public Administration Establishment (EPA) dedicated to holding and managing a Bitcoin reserve. This reserve would comprise 2% of the total Bitcoin supply, or 420,000 BTC, within 7-8 years.

The purpose of this reserve is to create a new type of “national digital gold” to diversify foreign exchange reserves and protect the country’s financial sovereignty.

The funding for the Bitcoin reserve would come from public mining using surplus nuclear and hydroelectric power, systematic retention of BTC seized from legal proceedings, and allocation of a quarter of the amounts collected via Livret A and LDDS saving schemes to daily BTC purchases on the secondary market.

Encouraging Euro-Denominated Stablecoins

The bill acknowledges that stablecoins are a credible alternative to the Visa-Mastercard system. It proposes regulated daily use, allowing a ceiling of 200 Euros/day in payments using Euro-denominated stablecoins, which would be exempt from taxes and social contributions, and payment of taxes in Euro stablecoins.

The goal is to simplify the MiCA regulation to facilitate stablecoin issuance by European banks and companies, and oppose the digital Euro (CBDC) at the EU Council, which is seen as centralizing and potentially harmful to financial freedoms.

Supporting Industry Players and Boosting Institutional Crypto Adoption

The bill also addresses energy and financial barriers to the development of the French ecosystem, proposing to adapt electricity for mining.

The bill also suggests integrating Bitcoin and crypto into the EPA via ETNs to support institutional adoption and secure indirect holding. On certain crypto assets, the risk weighting could be adapted up to 1,250% to enable “Lombard” loans backed by crypto.

Defending the French Crypto Ecosystem

This pro-Bitcoin and crypto bill is an independent legislative proposal without collaboration from other political forces. It reflects the party’s ambition to position itself as the party best able to defend the interests of the French crypto ecosystem.

The bill is being discussed as the US and some EU countries are facing recession fears due to current economic conditions.

Bitcoin is already recognized as the best investment in 2025, a hedge against inflation, and a store of value. It could potentially counteract the dangers of a falling economy.

On October 28, Bitcoin is trading above $114,000 as the crypto industry awaits important events this week. In the past month, Bitcoin has surged by more than 4%, indicating chances of ending October in the green in 2025.