France’s Legislative Push for Bitcoin and Euro Stablecoins
Reviewed by top industry experts and seasoned editors, this article delves into France’s National Assembly’s recent decision to oppose the European Central Bank’s (ECB) digital euro initiative. Instead, they aim to bolster Bitcoin and euro-based stablecoins. The resolution, introduced on October 22, 2025, by Éric Ciotti and members of the UDR, reflects a strategic pivot in France’s monetary policy.
Advocating for a National Bitcoin Reserve
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The proposal suggests establishing a national Bitcoin reserve, representing 2% of the entire Bitcoin supply, equivalent to approximately 420,000 BTC, over a span of seven to eight years. Innovative funding methods are proposed, including utilizing excess energy for cryptocurrency mining, retaining confiscated Bitcoin, and allocating a portion of savings from Livret A and LDDS accounts for routine Bitcoin acquisition. Additionally, the plan proposes allowing tax payments in Bitcoin, contingent upon constitutional validation.
Proponents argue that a centrally managed digital currency could enable governmental oversight over individuals’ finances, drawing parallels to China’s digital yuan. Concerns also highlight the potential for a digital euro to facilitate direct transfers to the ECB, thereby undermining traditional banking structures and increasing the risk of financial instability.
Strengthening Euro Stablecoins and Expanding Market Influence
The legislative motion calls for enhancing the prominence of euro-denominated stablecoins to reduce reliance on dollar-pegged tokens. As per the International Monetary Fund (IMF), a significant 91% of the stablecoin market capitalization, amounting to $210 billion out of $230 billion, is dollar-centric. In stark contrast, the most substantial euro stablecoin holds a market cap of approximately $259 million.
Lawmakers advocate for revisions to the Markets in Crypto-Assets (MiCA) regulations to facilitate the issuance of euro tokens by European banks and enterprises. As the global cryptocurrency market cap stands at $3.75 trillion, adjusting these rules could significantly enhance Europe’s competitive stance.
Proposals for Banking Regulation Adjustments
Part of the legislative package includes calls for revising Basel prudential regulations. Current guidelines categorize some crypto-backed loans as high-risk, necessitating capital buffers up to 1,250%. Advocates for the resolution argue these stringent rules deter crypto-collateral lending and propose a “targeted deviation” to motivate greater bank involvement in the crypto sector.
France has already shown a progressive approach by regulating crypto-related activities. The Autorité des Marchés Financiers (AMF) has approved BPCE’s Hexarq for custody and trading, and Lise, a tokenized equity platform, has received approval under the DLT Pilot Regime. Chainalysis data indicates that France processed approximately $180 billion in cryptocurrency transactions between July 2024 and June 2025, positioning it as one of Europe’s most active crypto markets.
This proposal is subject to rigorous legal and political scrutiny, yet it underscores France’s commitment to shaping the future of digital currencies within Europe. The ongoing debate is anticipated to capture significant public interest, highlighting the nation’s strategic vision for digital finance.
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