France's UDR Party Proposes Landmark Bill for National Bitcoin Strategic Reserve

French Parliament Considers Ambitious Bitcoin Reserve Plan

On October 28, 2025, France's center-right Union of the Right and Centre (UDR) party, spearheaded by lawmaker Éric Ciotti, tabled a groundbreaking crypto bill in the French Parliament. The proposed legislation aims to establish a national Bitcoin Strategic Reserve, a move that could significantly redefine France's financial sovereignty and its stance within the European Union's digital currency landscape.

The bill outlines an ambitious plan to acquire approximately 420,000 BTC, which constitutes about 2% of Bitcoin's total supply, over a period of seven to eight years. This initiative positions Bitcoin as a 'national digital gold' to safeguard France's financial independence and diversify its existing foreign exchange reserves. If enacted, France would become the first European nation to integrate Bitcoin into its national reserves and potentially surpass the United States' holdings, becoming the world's largest sovereign Bitcoin holder. At current market prices, this reserve would be valued at over $48 billion.

Funding Mechanisms and Management

The proposed legislation details several innovative methods for funding and managing this substantial Bitcoin reserve. A dedicated Public Administrative Establishment (EPA) would be created to oversee the acquisition and secure storage of the assets. Funding sources include:

• Public Bitcoin Mining: Utilizing France's surplus nuclear and hydroelectric energy to power domestic Bitcoin mining operations, with adapted taxation to encourage participation.
• Seized Crypto Assets: Retaining Bitcoin and other cryptocurrencies confiscated during legal proceedings, rather than liquidating them.
• National Savings Plans: Allocating a quarter of funds from popular national savings schemes, such as the Livret A, for daily Bitcoin purchases, potentially amounting to around €15 million per day or approximately 55,000 BTC annually.
• Tax Payments: Pending constitutional approval, the bill suggests allowing citizens to pay certain taxes in Bitcoin.

These mechanisms underscore a strategic approach to integrate Bitcoin into the nation's long-term economic framework without relying on traditional debt financing.

Challenging the Digital Euro and Promoting Stablecoins

A significant aspect of the UDR's bill is its direct challenge to the European Union's monetary policy, particularly its opposition to the proposed digital euro (CBDC). The bill describes the digital euro as a 'centralizing tool' that could threaten financial freedoms and personal privacy. Instead, it advocates for the promotion of euro-denominated stablecoins, proposing that citizens be allowed to make tax-free payments of up to €200 per day using these assets and even pay taxes with them.

Furthermore, the bill includes provisions aimed at fostering the broader French crypto industry. These include adapting electricity taxation for mining operations through a progressive excise duty and integrating crypto-assets into the PEA (Plan d'Épargne en Actions) in the form of Exchange Traded Notes (ETNs). It also calls for revisions to European prudential rules to facilitate crypto-backed loans.

Political Outlook and Future Implications

Despite its comprehensive scope and ambitious goals, the bill faces considerable political hurdles. The UDR party, led by Éric Ciotti, currently holds only 16 out of 577 seats in the National Assembly, indicating limited legislative leverage. While the bill's immediate passage in its current form is considered unlikely, its introduction marks a pivotal moment in France's crypto debate. It signals a growing political willingness to view Bitcoin not merely as a speculative asset but as a strategic tool for economic independence and digital sovereignty. Even if the bill does not pass, it is expected to significantly influence future discussions on digital assets and monetary policy within France and the wider European Union.