|

France Stuns Europe: Lawmakers Adopt Bitcoin and Ban Digital Euro

France has taken a daring step that might reshape Europe’s financial route. Lawmakers within the National Assembly have adopted a decision opposing the introduction of the European Central Bank’s (ECB) proposed digital euro whereas endorsing Bitcoin and the usage of euro-denominated stablecoins as alternate options.

The proposal, introduced on October 22, 2025, by Éric Ciotti and members of the Union of the Right for the Republic (UDR), calls on the French authorities to reject the European Commission’s draft regulation establishing a digital euro.

Source: French National Assembly

Instead, it urges help for euro-based stablecoins and better nationwide funding in crypto-assets.

Is France’s Bitcoin Reserve Plan a Defense of Freedom or a Rebellion Against Europe?

The doc, titled “Proposal for a European Resolution Calling for Support for the Transformation of the Monetary System,” argues that central financial institution digital currencies (CBDCs) pose a risk to privateness and financial freedom.

Ciotti described the transfer as a step towards defending “elementary particular person rights” and sustaining financial sovereignty in an more and more digital economic system.

French lawmakers warned {that a} centrally managed community would permit authorities to trace and probably freeze residents’ funds.

The explanatory memorandum in contrast the ECB’s venture to China’s digital yuan, suggesting that related centralized oversight may “pose a serious risk to elementary particular person freedoms.”

The ECB is at present within the preparation part of the digital euro, which started in November 2023 and is predicted to conclude by the tip of 2025. The forex may enter circulation round 2029, according to ECB Executive Board member Piero Cipollone.

Lawmakers additionally warned that adopting a digital euro may destabilize Europe’s banking system by permitting customers to maneuver deposits on to the ECB, probably triggering a “financial institution run” and concentrating monetary energy inside a single establishment.

The decision said that “such a focus of energy could be dangerous to financial freedom” and that it’s “not the function of the ECB to behave as a industrial financial institution.”

Instead, the French proposal lays out a sweeping pro-crypto agenda centered on three key areas: making a nationwide Bitcoin reserve, selling euro-denominated stablecoins, and supporting home crypto trade progress.

Under the plan, France would set up a public administrative physique to manage a strategic Bitcoin reserve equal to 2% of the overall Bitcoin provide, roughly 420,000 BTC, to be amassed over seven to eight years.

The initiative goals to create a “nationwide digital gold” reserve to diversify France’s overseas trade holdings and strengthen monetary sovereignty.

Funding would come from surplus vitality used for public mining, the retention of Bitcoin seized in authorized instances, and the allocation of a portion of financial savings from Livret A and LDDS schemes towards day by day BTC purchases.

The proposal additionally introduces the opportunity of permitting tax funds in Bitcoin, topic to constitutional approval.

France Calls on Europe to Break Dependence on U.S. Dollar Stablecoins

Alongside Bitcoin, the movement seeks to advance the usage of euro-denominated stablecoins as an alternative choice to U.S. dollar-backed tokens that dominate world markets.

The doc criticizes the ECB’s restrictive stance on euro stablecoins and urges the European Commission to revise the Markets in Crypto-Assets (MiCA) regulation to make it simpler for European banks and firms to challenge stablecoins.

Citing International Monetary Fund knowledge, the report notes that 91% of world stablecoin capitalization, round $210 billion out of $230 billion, is denominated in U.S. {dollars}, primarily by means of Tether (USDT) and Circle’s USD Coin (USDC).

Source: CoinGecko

In distinction, the main euro stablecoin holds simply $259 million in market capitalization. The proposal argues that this imbalance leaves Europe overly depending on U.S. companies and requires insurance policies that might permit euro-backed stablecoins to compete globally.

France’s central financial institution governor, François Villeroy de Galhau, has beforehand warned that Europe’s hesitation could deepen its reliance on non-European digital currencies.

Speaking on the Paris Fintech Forum earlier this month, he mentioned European banks ought to concentrate on growing euro-denominated stablecoins reasonably than relying solely on dollar-based merchandise.

The UDR’s decision additionally proposes easing Basel prudential guidelines, which at present classify some crypto-backed loans as high-risk with capital necessities of as much as 1,250%.

Lawmakers argue this makes such loans unattractive for banks and name for a “focused deviation” from the Basel customary to encourage crypto-collateralized lending.

France Strengthens Its Crypto Framework Ahead of MiCA Implementation in 2026

The proposal arrives at a pivotal time for France’s crypto trade. The nation’s monetary regulator, the Autorité des Marchés Financiers (AMF), recently authorized BPCE’s subsidiary, Hexarq, to supply crypto custody and buying and selling providers, marking one other main banking establishment getting into the market.

France has also approved the Lightning Stock Exchange (Lise), its first totally tokenized fairness platform working underneath the EU’s Distributed Ledger Technology (DLT) Pilot Regime, displaying rising nationwide curiosity in blockchain-based monetary infrastructure.

At the identical time, French regulators have been intensifying scrutiny of crypto exchanges.

The prudential supervision authority, ACPR, has conducted anti-money laundering inspections on dozens of firms, together with Binance and Coinhouse, as a part of preparations for full implementation of the MiCA framework throughout the European Union by 2026.

Meanwhile, Europe’s crypto market continues to develop quickly. Chainalysis knowledge shows France processed $180 billion in crypto transactions between July 2024 and June 2025, putting it among the many area’s most lively markets, behind Germany and the United Kingdom.

The submit France Stuns Europe: Lawmakers Adopt Bitcoin and Ban Digital Euro appeared first on Cryptonews.

Similar Posts