France Weighs Bill to Allocate 2% of Bitcoin Supply for Strategic Reserve

In a surprising turn that could reshape national reserve strategies in Europe, France is reportedly considering legislation that would enable the country to acquire approximately 2% of the total Bitcoin supply and establish a Strategic Bitcoin Reserve. This move signals France’s growing interest in crypto as an independent store of value and hedge against fiat currency instability.

According to sources familiar with the matter, the proposed measure would direct the French treasury to purchase a substantial amount of bitcoin and hold it within a publicly-reported sovereign reserve. While earlier French discussions focused on ideas to allocate 5 to 10% of national reserves in Bitcoin, this latest draft adjusts the target to a more modest but still significant 2% allocation of global BTC supply. While the bill remains in early stages, the policy shift reflects broader momentum among states exploring digital asset accumulation as a strategic reserve asset.

Why France Is Considering the Move

France’s contemplation of holding Bitcoin at sovereign level is motivated by several factors. First, the country faces pressure from monetary policy, inflation risks, and weakening euro dynamics. By embracing a national reserve of Bitcoin, Paris hopes to diversify away from traditional fiat exposure and align with emerging global trends. Commentators note that France’s move follows growing interest in “tools of financial sovereignty” among central banks.

Second, bitcoin’s capped supply and independent issuance model are cited as key benefits. Advocates point out that unlike gold or fiat currencies, the cryptocurrency is not subject to centralized manipulation. The proposed French strategy to build a Strategic Bitcoin Reserve taps into this narrative.

Finally, France’s positioning as a European financial hub means modernizing its reserve framework could attract investment and technological talent. The discussion blends elements of national policy, crypto infrastructure, and global reserve management.

Details of the Proposal

While the text of the bill remains unpublished, several outlines have emerged:

• The acquisition would target roughly 2% of total bitcoin supply, equating to approximately 420,000 BTC (based on a total cap of 21 million coins).

• The purchases would occur over a multi-year horizon to avoid market disruption and align with fiscal policy guidelines.

• Custody arrangements would involve regulated digital asset service providers under French oversight.

• A transparent reporting mechanism would be established to disclose holdings, schedule of purchases, and fiscal impact.

Potential Impacts on Markets and Policy

If France moves forward, the implications are broad:

• The price of bitcoin could respond positively to each tranche of large-scale sovereign demand.

• Reserve diversification could influence how other nations view crypto accumulation as part of macro strategy.

• European regulator scrutiny could intensify as state-level crypto adoption raises questions about financial stability, cross-border capital flows, and exchange oversight.

Challenges Ahead

Numerous hurdles remain. Regulators and policymakers will need to address execution risks, argue the case to public and fiscal stakeholders, and manage bitcoin’s volatile nature. Critics caution that projecting bitcoin as a national reserve asset may expose taxpayers to digital-asset risk and regulatory ambiguity. Moreover, aligning this move with France’s commitments to EU regulation and financial neutrality is a complex dance.

The Road Forward

France’s exploration of a bitcoin reserve strategy places it at the vanguard of sovereign digital-asset adoption even if the 2% target is more conceptual than imminent. Observers expect formal draft language this year, followed by parliamentary debate and public consultation. Whether France becomes the first major Western nation to hold bitcoin at scale remains to be seen, but the conversation marks a significant pivot in how states view digital currencies.

FAQs

Q1: Is France officially creating a Bitcoin reserve targeting 2% of total supply?
Not yet. The bill is under consideration. Discussions suggest the aim is to acquire roughly 2% of the total bitcoin supply to establish a sovereign reserve.

Q2: Why 2% of bitcoin supply?
This allocation is viewed as a significant but manageable stake in bitcoin, offering diversification from fiat reserves while limiting exposure to cryptocurrency volatility.

Q3: How would the purchases be made?
Purchases would likely occur over several years to avoid disrupting markets. Custody would be managed by regulated digital-asset providers under French law.

Q4: What are the risks of such a move?
Bitcoin’s price volatility, regulatory uncertainties, fiscal accountability, and integration with traditional reserve frameworks all pose challenges.

Q5: How does this differ from other countries’ plans?
Other nations have hinted at similar ideas, but France’s intention to allocate a specific percentage of bitcoin supply for a sovereign reserve is a novel approach in the West.

Q6: When might the bill become law?
A draft is expected in the coming months, but parliamentary review, amendments, and approval could delay enactment. Market watchers will be monitoring for signs of formal legislative action.