France is moving to establish a Bitcoin reserve. This marks one of the boldest national crypto initiatives in Europe. Lawmakers from the Union of the Right for the Republic (UDR) introduced a bill proposing that France purchase up to 2% of Bitcoin’s total supply over the next seven to eight years. The Bitcoin reserve bill would make France the first European nation to hold a massive strategic Bitcoin stockpile. It shows growing interest among governments for lower reliance on outdated monetary systems. What the Bitcoin Reserve Bill Proposes The proposal was introduced by Éric Ciotti (president of the UDR) and was supported by several party members. It outlines a national plan to acquire 420,000 BTC gradually through mining, public investment and strategic holdings. According to Alexandre Laizet, the Director of Bitcoin Strategy at The Blockchain Group, France intends to use nuclear and hydroelectric energy for mining. France is considering a bill to accumulate 2% of Bitcoin’s supply | source: X The mined BTC would then become part of a long-term national reserve and would be permanently held by the state. This approach shows France’s intention to combine renewable energy use with financial innovation. It also shows a trend toward using surplus electricity to support public mining efforts. This is as opposed to selling it cheaply or letting it go unused. Why France Opposes the Digital Euro Alongside the Bitcoin initiative, lawmakers are rejecting the European Central Bank’s digital euro proposal. They argue that a centralised digital currency would give authorities too much control over personal finances. The National Assembly’s resolution states that such a system could allow the ECB to monitor or freeze funds, which would threaten privacy and individual freedom. Lawmakers compared it to China’s digital yuan and warned that Europe risked repeating the same model. The ECB has been developing the digital euro over the last two years, with plans to finish the preparation phase by the end of this year and then launch around 2029. However, France’s pushback shows resistance within the bloc. A Push for Euro-Based Stablecoins Beyond Bitcoin, the Bitcoin reserve bill encourages euro-denominated stablecoins. Lawmakers want to strengthen Europe’s position in the international stablecoin market, which remains dominated by dollar-backed assets like Tether and USD Coin. Data from the International Monetary Fund shows that 91% of stablecoins in circulation are linked to the US dollar. Only a small fraction, or about $259 million in total cap, is represented by euro-backed coins. France is also pushing for Euro-backed stablecoins | source: X The bill therefore, urges the European Commission to relax regulations under the Markets in Crypto-Assets (MiCA) framework. This would make it easier for European institutions to issue stablecoins. Strengthening France’s Crypto Industry The Bitcoin reserve bill comes as France’s crypto sector expands. The country’s regulator, the Autorité des Marchés Financiers (AMF) has been approving more firms under national crypto rules ahead of full MiCA implementation in 2026. The AMF recently licensed BPCE’s subsidiary Hexarq to provide crypto custody and trading services. It also approved Lise Exchange, France’s first tokenised stock platform under the EU’s Distributed Ledger Technology (DLT) Pilot Regime. At the same time, the ACPR (France’s banking regulator) has conducted anti-money laundering reviews of major exchanges, including Binance and Coinhouse, to make sure that they are compliant before MiCA takes full effect. Chainalysis data shows France processed about $180 billion in crypto transactions over the last year. This ranks Europe’s top three markets behind Germany and the UK.