France Seeks Digital Euro Ban, 2% BTC Reserve & Euro Stablecoins
On October 22, 2025, France’s National Assembly filed a resolution to block the European Central Bank’s planned digital euro, citing privacy, tracking and banking stability risks. Led by Éric Ciotti and UDR deputies, the motion calls for a public Bitcoin reserve equal to 2% of total BTC supply (around 420,000 BTC) over seven to eight years. Funding would come from surplus nuclear energy mining, seized crypto assets and redirected Livret A/LDDS savings.
The bill also proposes allowing tax payments in Bitcoin pending constitutional review and promotes euro-pegged stablecoins for daily transfers under €200/day, tax-free. It demands MiCA reforms to let EU banks freely issue stablecoins and seeks to ease Basel capital buffers on crypto-backed loans. With recent AMF approvals for BPCE’s Hexarq custody platform and Lise’s tokenized DLT Pilot, France aims to bolster regulated digital assets. If adopted by October 28, 2025, the proposal could make France the world’s largest sovereign Bitcoin holder and challenge USD stablecoin dominance.
Bullish
The resolution to ban the digital euro and create a 2% national Bitcoin reserve signals strong government support for Bitcoin, likely boosting institutional demand. Proposals to fund mining, simplify institutional BTC purchases, allow tax payments in Bitcoin, and ease Basel capital buffers could increase on-chain demand and adoption. Combined with a potential shift to euro-backed stablecoins, the move reinforces crypto’s role in France’s financial system. This backing from a G7 country can heighten market confidence, exerting upward pressure on Bitcoin prices. While regulatory and legal hurdles remain, the overall outlook for Bitcoin is bullish.