France's National Assembly filed a resolution on October 22, 2025, that would block the European Central Bank's digital euro project while establishing a national Bitcoin reserve and promoting euro-backed stablecoins. Representative Éric Ciotti and members of the UDR party introduced the measure, which challenges the ECB's timeline for launching a digital currency by around 2029.
What to Know:
- The resolution proposes building a strategic Bitcoin reserve equal to 2% of total supply — approximately 420,000 BTC — over seven to eight years through energy mining, seized assets, and redirected savings accounts
- Lawmakers cite privacy concerns about central bank digital currencies, warning that a digital euro could enable authorities to track and freeze funds while potentially destabilizing commercial banks
- France processed roughly $180 billion in cryptocurrency transactions between July 2024 and June 2025, positioning it as one of Europe's most active digital asset markets
Proposed Bitcoin Reserve Targets 420,000 Coins
The French proposal outlines a multi-year accumulation strategy for Bitcoin holdings. Funding mechanisms include mining operations powered by surplus energy, retention of Bitcoin seized in criminal proceedings, and allocation of a portion of Livret A and LDDS savings accounts toward daily Bitcoin purchases. These savings vehicles are popular French deposit accounts traditionally invested in government-backed securities.
The resolution also calls for enabling tax payments in Bitcoin, though such changes would require constitutional review.
Proponents argue that building a strategic reserve would position France ahead of other European nations in digital asset adoption.
The seven-to-eight-year timeline suggests an average acquisition of roughly 52,000 to 60,000 BTC annually, though the resolution does not specify exact purchase schedules or price targets.
Banking Concerns Drive Opposition to Digital Euro
French legislators expressed alarm about the ECB's digital currency plans, drawing comparisons to China's digital yuan system. They warned that a centrally controlled digital euro could grant authorities unprecedented surveillance capabilities over citizens' financial transactions.
The motion highlights a structural risk to traditional banking. If the ECB issues a digital euro, depositors could transfer funds directly to the central bank, bypassing commercial institutions.
This disintermediation could weaken banks' deposit bases and trigger rapid withdrawals during financial stress.
The ECB entered its preparation phase in November 2023 and expects to complete that stage by the end of 2025. Piero Cipollone, an ECB official, has indicated that a digital euro could enter circulation around 2029.
Push for Euro Stablecoins and Regulatory Changes
The resolution emphasizes the dominance of dollar-denominated stablecoins in global markets. According to IMF data cited in the proposal, dollar-based tokens account for roughly $210 billion of the $230 billion stablecoin market — a 91% share. The largest euro-backed stablecoin holds about $259 million in market capitalization.
French lawmakers want to adjust MiCA regulations to make it easier for European banks and companies to issue euro-denominated tokens. The existing framework, they argue, creates barriers that prevent European institutions from competing with dollar-based alternatives.
The proposal also targets Basel prudential rules that classify crypto-backed loans as high-risk assets. Current regulations impose capital buffers of up to 1,250% on such lending, effectively discouraging banks from accepting digital assets as collateral. The resolution seeks what it terms a "targeted deviation" from these standards to encourage greater institutional participation in cryptocurrency markets.
France Expands Regulated Crypto Infrastructure
French financial regulators have already approved several cryptocurrency operations. The Autorité des Marchés Financiers granted BPCE's Hexarq platform authorization for custody and trading services. Lise, a tokenized equity platform, received approval under the DLT Pilot Regime, a European Union framework for testing distributed ledger technology in traditional finance.
Data from Chainalysis shows France processed approximately $180 billion in cryptocurrency flows between July 2024 and June 2025. This volume places France among Europe's most active markets for digital asset transactions, though the data does not distinguish between retail and institutional activity.
Understanding Key Terms in Digital Finance
A central bank digital currency differs from cryptocurrencies in fundamental ways. While Bitcoin operates on a decentralized network without central control, a digital euro would function as legal tender issued directly by the ECB.
Such currencies allow central banks to program monetary policy features and potentially monitor transactions in real time.
Stablecoins are cryptocurrencies designed to maintain a stable value by pegging to traditional assets like the dollar or euro. Most operate through reserves of cash or short-term securities, though mechanisms vary. MiCA, the Markets in Crypto-Assets regulation, establishes a comprehensive framework for stablecoin issuers and crypto service providers across the European Union.
Basel rules refer to international banking standards that determine how much capital banks must hold against various types of loans and assets. The 1,250% risk weight applied to certain crypto exposures means banks must set aside more than twelve times the value of a crypto-backed loan in capital reserves, making such lending economically unattractive.
Looking Ahead
The French resolution faces significant legal and political hurdles before implementation. The proposal represents an attempt to influence European digital currency policy while positioning France as a hub for cryptocurrency activity. The debate will likely intensify as the ECB moves closer to finalizing its digital euro plans.