● France’s Bold Bitcoin Grab, 420,000 BTC, Strategic Reserve, Digital Euro Ban

France, Strategic Reserve of 420,000 BTC in 7-8 Years — Digital Euro Ban, Public Mining, and Tax Payment in BTC Allowed

We summarize the key points of the cryptocurrency bill submitted by France’s UDR and its market and policy impact.This article includes specific figures from the bill (420,000 BTC, annual target of 55,000 BTC acquisition), plans for public mining and energy use, the proposal to ban the digital euro and activate euro-based stablecoins, and cites the U.S. ban on CBDCs.Additionally, practical issues not well covered by other media (market shocks, procurement funding, legal and governance risks) are provided in separate analysis.

News Headlines — Key Summary

France’s center-right UDR has defined Bitcoin as ‘digital gold’ and proposed a bill to strategically reserve 420,000 BTC, equivalent to 2% of the total supply, over the next 7-8 years.The bill includes the establishment of a new public administrative body, the use of surplus energy from nuclear and hydroelectric sources for public mining, tax benefits for miners, allowance for government-held cryptocurrency, mass purchases through savings products (approximately 15 million euros per day, annual target of 55,000 BTC), and allowing citizens to pay certain taxes in Bitcoin.Simultaneously, the bill bans the issuance of digital euros and promotes the activation of euro-based stablecoins, citing the U.S. prohibition of CBDCs as an example.

Major Details by Item in the Bill

• Reserve Size and Period
  The bill specifies plans to acquire about 420,000 BTC, equivalent to 2% of Bitcoin’s total supply, within 7-8 years.
  The target acquisition amount for each year is approximately 55,000 BTC, with a daily purchase budget of about 15 million euros.

• Public Mining and Energy Utilization
  The plan includes operating a public mining business using surplus energy from nuclear and hydroelectric sources.
  Public mining is aimed at revitalizing the domestic mining industry with tax benefits for miners.

• Financial and Tax Mechanisms
  The government is allowed to convert cryptocurrencies seized through legal procedures into state-owned assets.
  It includes the plan to purchase Bitcoin in large quantities using national funds through savings products like Livret A, LDDS.
  Specific tax payment provisions in Bitcoin are also stated, in an attempt to expand the connection between public finance and cryptocurrency.

• CBDC, Digital Euro, Stablecoin Stance
  UDR has included a ban on digital euro issuance in the bill.
  Instead, it advocates the activation of private and quasi-public stablecoins based on the euro, citing the U.S. rationale for prohibiting CBDCs.

Feasibility Analysis — Realistic Constraints of Market and Policy

• Market Liquidity and Price Shock
  The annual purchase of 55,000 BTC represents considerable demand based on the current market.
  (For example, assuming BTC prices range from 50,000 to 100,000 euros, annual purchases of billions to tens of billions of euros could significantly impact global spot and derivative liquidity.)
  Large purchases may lead to price increases, but the accompanying volatility and liquidity risks require a delicate market intervention strategy.

• Funding and Legal Issues
  The plan for daily execution of 15 million euros and savings-related strategies expose national assets directly to cryptocurrency.
  This may raise numerous legal and policy issues in terms of investor protection, financial regulation, and tax law.

• Energy, Environmental, and Political Issues of Mining
  The use of surplus energy from nuclear and hydroelectric sources for public mining requires an assessment of economic efficiency.
  Local power supply and demand, community acceptability, and compliance with EU energy and environmental regulations are also subjects for examination.

• Potential Conflicts at the European and Eurozone Levels
  Prohibiting the digital euro at the national level and encouraging stablecoins can conflict with ECB and Eurozone policies.
  Pursuing such measures unilaterally without consultation with EU institutions mandated with euro monetary policy and financial stability can lead to institutional friction.

International Context — Political Implications of Citing the U.S. CBDC Ban

The UDR references U.S. discussions on the CBDC ban to justify similar decisions.
This move extends beyond cryptocurrency acceptance to emphasize financial sovereignty as a political message.
The competition among the U.S., China, and the EU over digital currency and securing payment sovereignty are interlinked, making national holdings of digital assets a tool for geopolitical and financial strategy.

Market and Investor Implications

• Increased Demand for Bitcoin
  National bulk purchasing plans can serve as a long-term demand factor.
  However, the actual purchase speed, funding methods, and public vs. private market purchase strategies can greatly influence the impact.

• Watch for Regulatory and Legal Risks
  Allowing BTC as a tax payment method and mass purchases through savings products entail regulatory risks.
  Investors and financial institutions should prepare for legal and tax volatility.

• Reassessment of the Mining Industry and Energy Supply
  The promotion of public mining could alter the mining economy, power contracts, and local regulations, prompting miners and energy companies to readjust their strategies.

Policy and Social Implications

• Strengthening Financial Sovereignty vs. Tension in Currency Integration
  Holding digital assets at the national level has the pretext of strengthening financial sovereignty but may cause conflicts with Eurozone currency integration and joint regulation.

• Transparency and Accountability Issues
  The audit, evaluation, and pricing methods of state-held BTC, along with profit and loss handling and integration with public accounting systems, are necessary.

• AML (Anti-Money Laundering) and International Law Regulations
  Allowing state ownership, mining, and use of cryptocurrency for tax collection will require the design of a new regulatory model at the intersection with AML and international money laundering standards.

Most Important Matters Not Well Covered by Other Media

• The Source of Actual Acquisition Funds and Political Costs
  The bill specifies the execution of ’15 million euros per day,’ but the source of this funding and its coordination with exchange rate risk and budget priority is unclear.
  This is the most realistic barrier and could lead to national burdens (such as savings product linkage) and political backlash.

• Lack of Policies on Market Shock Mitigation (Steering) and Holding/Clearing
  If large purchases drive up prices, a clear holding/clearing policy thereafter is essential.
  Uncertainty regarding the timing, conditions, and reporting system of the sale of BTC held by the government can undermine market trust.

• Need for European-Level Regulatory and Diplomatic Responses
  Large BTC holdings by a single country extend beyond internal policies and are linked with Eurozone currency policy and foreign exchange governance.
  Thus, proceeding without prior consultation with the ECB and the European Commission could actualize institutional conflict.

Conclusion — What to Watch For

The UDR’s bill in France is a powerful political message emphasizing financial sovereignty and an attempt to incorporate cryptocurrency as a public asset.If implemented, it could significantly impact Bitcoin demand, market structure, and the mining ecosystem, but there are considerable challenges in funding, legal consistency, and European-level collaboration.Market participants and policymakers should closely observe the details of the bill (purchase mechanisms, custody, reporting, tax treatment) and the EU institutions’ responses.

Checklist for Investors and Policymakers

• Confirm the final text of the bill and parliamentary voting schedule.
• Track the purchase method (public market vs. OTC) and speed (annually/quarterly).
• Review the disclosure of custody, audit, and accounting treatment plans.
• Monitor official positions and regulatory responses from the ECB and EU.
• Evaluate regional community and environmental regulatory risks related to mining subsidies and power contracts.

< Summary >France’s UDR proposed a bill to acquire 420,000 BTC (2% of total supply) over 7-8 years.Key points include public mining (using surplus energy), tax benefits, allowing asset seizure holdings, mass purchases through savings products, allowing tax payment in BTC, banning the digital euro, and advocating euro-based stablecoins.There are numerous practical risks, including market shocks, funding, legal, and European-level conflicts.The most crucial factors are the ‘source of actual funds’ and ‘transparent governance of purchase, holding, and clearing.’

[Related Articles…]France, Strategic Bitcoin Reserve Plan…Strengthening National Financial SovereigntyUDR Advocates Digital Euro Ban…Encouraging Transition to Euro Stablecoin

*Source: https://www.digitaltoday.co.kr/news/articleView.html?idxno=600467