Policy bill on Bitcoin and crypto to reach French parliament

A pro-Bitcoin and crypto bill is expected to enter the French parliament, backed by the UDR party and its leader Eric Ciotti. The bill sets ambitious goals for building a BTC treasury and expanding euro stablecoin adoption.

The French UDR party and its leader, Eric Ciotti, will propose an ambitious pro-crypto bill with multiple growth points. 

One of the biggest items on the proposal is the establishment of a BTC reserve of 420,000 coins, making up 2% of the total BTC supply. The treasury would rival some of the biggest buyers, bringing it close to the reserves of Strategy (MSTR). 

The bill, according to reports, will accrue the reserve through the creation of a special entity, a Public Administrative Establishment (EPA), which will have to accumulate the reserve in the next 7-8 years. 

The reserve is presented as a diversification tool for foreign exchange reserves. The BTC would be acquired through public mining, tapping excess energy production, with favorable miner taxation. The company will have to contend with the ever-shrinking block reward, in addition to competing with other miners and their growing data centers. 

The other main source of coins would be BTC seized during legal proceedings. France has already gained some reserves in this manner. As Cryptopolitan reported, the state seized BTC from the now-defunct dark web site DFAS. 

The state will also buy additional BTC through government savings schemes, potentially setting aside 15M euro per day, or around 55,000 BTC per year. The purchases of the French state, if the bill is accepted, could rival even the biggest corporate buyers. 

France to encourage euro-denominated stablecoins

The bill will also encourage the creation of euro-denominated stablecoins. This type of asset has been in the focus of major European banks, though without special support from governments.

The bill points out that stablecoins can be an alternative to debit card payments and suitable for regulated everyday use. In addition to establishing the stablecoin as a legal payment, the bill sets a 200 euro ceiling for tax-exempt purposes. Stablecoins may also be used to pay taxes if the bill is accepted. 

The new bill specific to France may ease some of the MiCA regulations at the level of the European Union to facilitate stablecoin issuance by European banks and even companies. Most notably, the bill would oppose the creation of digital assets by centralized authorities, deemed as limiting financial freedom. 

Proposal integrates Bitcoin activity with the French financial system

The new bill contains more sections on the favorable treatment of miners in terms of energy access and taxation. The state may change taxation and offer flexible regimes for mining data centers. 

Additionally, BTC may be considered sufficient collateral for some types of loans. To boost BTC acceptance, the bill also offers access to crypto through exchange-traded notes (ETN). 

Technologically, France has been one of the leading crypto regions. However, some of the more liberal use cases for blockchains have been limited in the country, as in the case of Polymarket. The current bill is more focused on the financial side of Bitcoin and stablecoins. 

While ambitious, the new bill by the UDR relies on limited political impact, and its acceptance is unlikely. However, the bill spells out key issues in crypto usage and adoption, paving the way for shifts in the acceptance of BTC and other technologies. 

If you're reading this, you’re already ahead. Stay there with our newsletter.