France is making a daring move by incorporating Bitcoin into its financial plan. A new measure presented to the National Assembly suggests that the nation purchase 2% of the total Bitcoin supply.
France would be the first country in Europe to create a Bitcoin Strategic Reserve by accumulating approximately 420,000 BTC within the next seven to eight years, if it were authorised.
France to purchase Bitcoin
The Union of the Right and Centre Party (UDR), led by Éric Ciotti, made the suggestion. It lays out a bold strategy to create what proponents refer to as “France’s national digital gold.”
A public administrative organisation would oversee the reserve. It was created especially to store and manage the country’s Bitcoin holdings.
Diversifying France’s foreign exchange reserves is the aim. It makes the nation a leader in the adoption of digital assets and enhances financial sovereignty.
Some politicians are beginning to embrace this notion. Like gold in the past, Bitcoin may act as a hedge against inflation and currency fluctuations.
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Why Bitcoin?
The plan calls for funding the Bitcoin accumulation through many methods. Public Bitcoin mining activities would be one important source.
France’s excess nuclear and hydroelectric energy powers it, and its strategy seeks to encourage domestic energy sectors while making the process sustainable.
Additionally, the measure proposes that rather than auctioning off Bitcoins confiscated during court investigations, the state should keep them.
Also, some money from well-known savings accounts like LDDS and Livret A, and they would use it to purchase Bitcoin on the open market. This equates to over €15 million every day, or roughly 55,000 Bitcoin annually. A suggestion has even been made to accept Bitcoin payments for taxes. However, constitutional permission would be required for this.
Other crypto developments in France
The law has a number of pro-crypto provisions in addition to the Bitcoin reserve. This is intended to improve France’s standing in the market for digital assets.
It suggests permitting small-scale transactions and acknowledges stablecoins backed by the euro as a valid form of payment. This is free from taxes and social payments up to €200 per day.
France is conducting anti-money laundering (AML) checks on dozens of cryptocurrency exchanges, including Binance and Coinhouse, while authorities determine which of the more than 100 registered companies will be awarded EU-wide operating permissions under the MiCA regulation.
Also, a draft law that would use the nation’s excess nuclear energy for Bitcoin mining has been unveiled by France’s far-right National Rally party. The idea is to use electricity that would otherwise be sold at a loss or left unused during periods of low demand.
The multiple developments in France, starting from Bitcoin investment to mining regulations, show that the country is actively looking into the development of the crypto and blockchain industry in the country.
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