- The far-right French political party, UDR, has introduced a bill into the French National Assembly, which if passed, would see the nation establish a strategic Bitcoin reserve holding as much as 420,000 BTC.
- The reserve would be funded primarily through public Bitcoin mining and Bitcoin seizures from criminal proceedings.
- The bill is considered unlikely to pass though, as UDR currently hold only 16 out of 577 seats in the French Parliament and haven’t built a broad base of support for their plan from other parties.
French lawmakers introduced a bill on October 28 proposing the European nation establish a strategic Bitcoin reserve, with the aim of acquiring 2% of the total Bitcoin supply, or around 420,000 BTC. If the bill passes into law, it would see France become the first EU nation to establish a strategic Bitcoin reserve.
The bill was introduced into the French Parliament by the Union of the Right of the Republic (UDR), a far-right political party led by Eric Ciotti, which currently holds just 16 of 577 seats in France’s National Assembly.
News of the plan to introduce the bill first broke on X, with crypto journalist and founder of Big Whale, Grégory Raymond, sharing details of the proposed legislation.
“The text proposes the creation of a Public Administrative Establishment (EPA) dedicated to holding and managing a reserve of 2% of the total bitcoin supply, i.e. 420,000 BTC within 7–8 years,” Raymond explained.
“The aim is to build a form of ‘national digital gold’ to diversify foreign exchange reserves and protect the country’s financial sovereignty.”
According to Raymond, the reserve would be funded in a few different ways, including public Bitcoin mining using excess nuclear and hydroelectric power, seizure of Bitcoin from legal proceedings, allocation of savings funds to purchase Bitcoin and possibly by allowing citizens to pay taxes using Bitcoin.
Related: Arthur Hayes Warns Banque de France’s €7.7B Loss Could Trigger Money Printing and Boost Bitcoin
“Extremely Low Probability” The Bill Will Pass: Raymond
While there’s some excitement around the bill, Raymond says it “has little chance of being adopted by the Parliamentary Bureau”, largely because the UDR party developed the bill on its own without building support from larger parties.
With just 16 out of 577 seats in the French Parliament, it’s virtually impossible for UDR to pass such a bill without significant time and effort put into building a coalition of supporters.
Despite stating there’s an “extremely low probability that this bill will pass,” Raymond said the bill is still a positive for the French crypto industry as it demonstrates UDR’s “ambition to position itself as the party best able to defend the interests of the French crypto ecosystem.”
Bill Opposes Digital Euro, Proposes Alternatives
The bill poses a direct challenge to the centralised control of the European economy by the European Union, explicitly calling for opposition to the digital euro and referring to it as a “centralizing tool.”
Instead, according to Raymond, the bill proposes using euro-denominated stablecoins, which would be issued by individual banks and companies, allowing countries like France to protect their economic sovereignty. Citizens would be able to spend up to 200 euros per day of these stablecoins without being subject to tax.
The bill also proposes allowing citizens to pay their taxes using these stablecoins and calls for an easing of MiCA regulations to encourage banks and other institutions to issue them.
There are also measures to support the growth of the French crypto industry, including changes to electricity taxation for Bitcoin miners and broadening access to tax-efficient investment in crypto through ETFs and other financial products.
Credit: Source link
