France is positioning itself to potentially shift its stance on digital currencies, as lawmakers prepare to assess a legislative proposal aimed at rethinking national policy toward Bitcoin and other cryptocurrencies. Spearheaded by Éric Ciotti of the Union of the Right for the Republic, the motion calls for a strategic pivot away from central bank digital currencies (CBDCs) like the proposed digital euro and instead encourages the promotion of euro-backed stablecoins and broader investment in crypto-assets.
The proposal, introduced earlier this month, urges the French government to reject the European Central Bank’s digital euro initiative. Instead, it promotes the idea of embracing decentralized financial instruments, highlighting stablecoins as viable alternatives. Ciotti’s motion reflects growing skepticism about CBDCs, citing privacy concerns and the centralization of monetary control as key issues.
Interestingly, while the motion does not directly advocate for the establishment of a national Bitcoin reserve, sources close to the matter suggest that Ciotti aims to push France toward acquiring up to 2% of Bitcoin’s total supply—an investment that would be valued at approximately $48 billion at current prices. This ambition mirrors recent developments in the United States, where authorities have begun accumulating crypto assets—often originating from seizures related to criminal investigations—to build strategic reserves.
The French proposal also references the United States’ GENIUS Act, passed in July, which aims to limit the expansion of CBDCs and foster stablecoin development. The motion proposes that France follow a similar trajectory by encouraging financial regulatory bodies to ease capital requirements for crypto-asset exposure, diverging from the more restrictive Basel III international banking standards adopted in 2022. This could potentially make it easier for French institutions to pledge crypto-assets as collateral, stimulating broader institutional adoption.
Should the motion gain traction, it could mark a significant turning point in France’s digital asset policy. The proposal is part of a broader wave of crypto interest sweeping through French politics. In August, members of the Rassemblement National party reportedly advocated for using surplus energy from France’s nuclear power plants to mine Bitcoin, underscoring a growing interest in leveraging national infrastructure for digital asset production.
Globally, France is not alone in exploring these ideas. Countries such as Kyrgyzstan and Bhutan have also begun to examine the feasibility of forming national cryptocurrency reserves. Kyrgyz lawmakers reportedly held discussions with former Binance CEO Changpeng Zhao, who currently serves as an advisor on the nation’s crypto strategy. Bhutan, on the other hand, has already announced plans to build a strategic reserve composed of Bitcoin and other digital tokens to diversify its financial holdings.
This growing international trend signals a shift in how nations perceive cryptocurrencies—not just as speculative assets, but as strategic tools for financial sovereignty and innovation. For France, joining this movement could enhance its competitiveness in the global financial system and reduce reliance on centralized banking structures.
Moreover, the legislative motion raises essential questions about the future of monetary policy in the digital age. If adopted, France would become one of the first major economies in the European Union to officially reject a central bank digital currency in favor of decentralized alternatives. This could set a precedent for other EU member states and prompt a broader reevaluation of the ECB’s digital euro initiative.
Critics of CBDCs argue that such currencies pose risks to individual privacy, given their traceability and potential for state surveillance. Proponents of stablecoins and decentralized cryptocurrencies, on the other hand, view them as a means to restore financial autonomy to individuals and reduce the monopoly of central banks over money supply.
The French motion also touches on regulatory reform, suggesting a more crypto-friendly prudential framework that would encourage financial institutions to interact with digital assets without facing prohibitive capital requirements. If implemented, this could boost innovation in the fintech sector and attract crypto startups to operate within France’s jurisdiction.
Additionally, embracing Bitcoin and stablecoins could offer macroeconomic benefits. For instance, by holding a portion of national reserves in Bitcoin, France could hedge against inflation and currency devaluation, much like how countries diversify their foreign exchange reserves with gold or other stable assets.
The strategic use of excess energy for Bitcoin mining, as previously proposed, also opens up new discussions about energy policy and sustainability. Utilizing otherwise wasted energy to mine Bitcoin could create economic value while mitigating environmental concerns associated with crypto mining, especially if powered by low-carbon sources like nuclear energy.
In essence, France stands at a crossroads. The current motion represents not just a policy recommendation, but a broader vision for integrating blockchain technology and digital assets into the national economy. Whether the proposal gains legislative support remains to be seen, but its mere introduction signals a significant shift in how seriously the French government is beginning to view cryptocurrency as part of its financial future.
As the motion awaits review in the National Assembly, it is already sparking debate among policymakers, economists, and industry stakeholders. If passed, it could catalyze a new wave of crypto adoption across Europe and redefine the continent’s approach to digital finance.