French Lawmakers Eye CBDC Ban and Bitcoin Reserves in New Proposal

• France’s National Assembly reviews motion to ban CBDCs like the digital euro.

• The proposal pushes for wider adoption of euro stablecoins and crypto investments to foster innovation.

• Inspired by the U.S. GENIUS Act, it suggests holding 2% of Bitcoin’s supply, valued at approximately $48 billion.

France CBDC ban proposal gains traction: Éric Ciotti’s motion to reject digital euro, boost stablecoins & crypto reserves. Explore implications for Bitcoin in Europe. Stay informed on crypto policy shifts.

What is the France CBDC Ban Proposal?

The France CBDC ban proposal is a formal motion introduced in the French National Assembly by Éric Ciotti, a lawmaker from the Union of the Right for the Republic, calling for the prohibition of central bank digital currencies such as the digital euro. This initiative, presented on Wednesday, advocates instead for the promotion and dissemination of euro stablecoins and increased investment in crypto-assets like Bitcoin. By prioritizing decentralized options over state-controlled digital currencies, the proposal aims to enhance financial innovation and sovereignty in Europe’s economic policies.

The motion draws inspiration from recent U.S. legislative actions, particularly the GENIUS Act signed into law in July, which similarly restricts CBDCs while supporting stablecoins. Ciotti’s resolution urges the French government to influence the European prudential framework for crypto-assets, diverging from the 2022 Basel standards to ease the use of crypto as collateral. This could facilitate broader integration of digital assets into mainstream finance without the perceived risks of CBDC centralization.

In the broader context of European monetary policy, the digital euro represents the European Central Bank’s exploration into CBDCs, intended as a complement to physical cash. However, critics like Ciotti argue that such currencies could undermine privacy, financial independence, and innovation, favoring instead private-sector stablecoins pegged to the euro. The proposal’s emphasis on crypto-assets aligns with growing global trends toward diversified digital reserves.

Éric Ciotti of the Union of the Right for the Republic led the charge in a motion for a resolution to ban CBDCs and promote stablecoins in France.

Lawmakers in France are set to review a proposal that could have significant implications for the country’s adoption of digital currencies, from stablecoins to Bitcoin (BTC).

In a motion for a resolution introduced on Wednesday, Éric Ciotti of the Union of the Right for the Republic led a proposal for France’s national assembly to ban the digital euro, potentially being pioneered by the European Central Bank and instead promote “the dissemination of euro stablecoins and investment in crypto-assets.”

The motion cited the US’ efforts to ban central bank digital currencies (CBDCs) and promote stablecoins through the GENIUS Act signed into law in July.

“This proposed European resolution therefore calls on the Government to advocate for the future European prudential framework specific to cryptoasset exposures to deviate specifically from the 2022 Basel standard to facilitate the pledging of cryptoassets, while maintaining the objective of a substantial overhaul of these rules within the Basel Committee,” said the motion.

Source: French National Assembly

The proposal did not explicitly mention establishing a national BTC reserve, but reports suggested that Ciotti intended to have the French government hold 2% of the total supply of the cryptocurrency, worth about $48 billion at the time of publication. Such a move would also follow the US government’s efforts to establish strategic BTC and crypto reserves, in part by using tokens seized through criminal cases.

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The motion, which as of Tuesday did not appear to have been considered by French lawmakers, was the latest in the country’s national assembly, potentially affecting policy on crypto and Bitcoin. In August, the political party Rassemblement National reportedly pushed for the French government to mine BTC using surplus energy from the country’s nuclear power plants.

How Could This Impact Bitcoin and Stablecoins in Europe?

The France CBDC ban proposal could significantly boost the legitimacy of Bitcoin and stablecoins across Europe by shifting regulatory focus away from CBDCs toward private digital assets. Stablecoins, which maintain a stable value often pegged to fiat currencies like the euro, offer a bridge between traditional finance and crypto, enabling faster transactions and reduced volatility. According to data from Chainalysis, stablecoin transaction volumes in Europe reached over $1.2 trillion in 2024, highlighting their growing role in cross-border payments.

By advocating for a deviation from the 2022 Basel standards, the motion seeks to lower capital requirements for banks holding crypto-assets, making it easier for institutions to pledge them as collateral. This could accelerate adoption, as noted by financial experts who emphasize the need for flexible regulations to support innovation. For instance, the European Central Bank’s own reports indicate that while CBDCs aim to enhance efficiency, they raise concerns over surveillance and monetary control, issues that stablecoins mitigate through decentralized governance.

Bitcoin, as a leading crypto-asset, stands to benefit from potential government reserves. Holding 2% of Bitcoin’s supply—approximately 420,000 BTC at current market caps—would position France as a major holder, similar to corporate treasuries like MicroStrategy’s. This aligns with expert views, such as those from financial analyst Willem Schroé, who argues that Bitcoin treasuries can generate yields through staking or lending, enhancing national reserves’ value over time. Statistics from Glassnode show that institutional Bitcoin accumulation has risen 15% year-over-year, underscoring the asset’s maturation as a store of value.

Furthermore, the proposal’s timing coincides with other European crypto policy developments, such as the Markets in Crypto-Assets (MiCA) regulation, which standardizes stablecoin issuance. If passed, Ciotti’s motion could influence EU-wide discussions, promoting a balanced approach that favors user privacy and market-driven solutions over centralized digital currencies.

Another country adopting crypto reserve policies?

In addition to the US government’s efforts under President Donald Trump to develop BTC and crypto stockpiles — which could potentially be bolstered by a $14-billion seizure earlier this month — other countries have been exploring options

Kyrgyzstan’s lawmakers reportedly began exploring the creation of a digital asset reserve following discussions with former Binance CEO Changpeng “CZ” Zhao, who works as an adviser to the government’s crypto committee. Meanwhile, one of the economic hubs in Bhutan said in January that it planned to set up a strategic crypto reserve, using BTC and other tokens.

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Frequently Asked Questions

What does the France CBDC ban proposal mean for European stablecoins?

The France CBDC ban proposal encourages the promotion of euro stablecoins as alternatives to the digital euro, aiming to foster innovation in private digital currencies. It calls for regulatory adjustments to make stablecoins more accessible for everyday use and investment, potentially increasing their market share in Europe while reducing reliance on central bank-issued options.

Will France hold Bitcoin as part of this crypto policy shift?

Yes, the proposal suggests that France consider holding up to 2% of Bitcoin’s total supply as a national reserve, mirroring U.S. strategies. This would involve acquiring around 420,000 BTC, valued at about $48 billion, to strengthen the country’s position in the global crypto economy and hedge against traditional financial risks.

Key Takeaways

• Ban on Digital Euro: The motion prioritizes prohibiting CBDCs to protect privacy and promote decentralized finance.
• Promotion of Stablecoins: Euro-pegged stablecoins would gain regulatory support, easing their integration into banking systems with lower Basel compliance burdens.
• Bitcoin Reserve Potential: France may acquire significant BTC holdings, following global trends and enhancing strategic digital asset reserves.

Conclusion

The France CBDC ban proposal, spearheaded by Éric Ciotti, marks a pivotal moment in European crypto policy, rejecting the digital euro in favor of stablecoins and Bitcoin investments. By aligning with U.S. precedents like the GENIUS Act and advocating for flexible regulations, this initiative could drive broader adoption of crypto-assets across the continent. As lawmakers deliberate, stakeholders should monitor developments to capitalize on emerging opportunities in digital finance, ensuring France leads in innovative, user-centric monetary solutions.