France Plans National Bitcoin Reserve, Rejects Digital Euro
French lawmakers have introduced a bill to establish a national bitcoin reserve of up to 420,000 BTC over seven to eight years. The proposal outlines public bitcoin mining powered by surplus nuclear and hydroelectric energy, seized BTC from criminal cases, and daily purchases funded by savings schemes such as Livret A and LDDS. It also suggests permitting tax payments in bitcoin and creating a Public Administrative Establishment to manage the national bitcoin reserve. The bill formally rejects the European Central Bank’s digital euro, citing risks to privacy, centralisation of power, and bank stability. Instead, it promotes euro-backed stablecoins and calls for MiCA revisions to boost euro-denominated token issuance ahead of full MiCA enforcement in 2026.
Bullish
Creating a national bitcoin reserve and committing to acquire 420,000 BTC over several years represents a significant institutional demand shock. In the short term, announcement-driven buying pressure and miner support from surplus energy could lift BTC prices. Over the long term, formal government backing and potential tax usage of bitcoin enhance network adoption and perceived legitimacy, reducing market volatility. The rejection of a digital euro and promotion of euro-backed stablecoins may redirect capital flows toward BTC. Together, these factors point to a bullish outlook for bitcoin.