During a frenzied week, France announced seemingly opposite policy lines.
On October 31, the French National Assembly adopted a first reading amendment to rename the wealth tax, which only targets real estate, to a broader “tax on unproductive wealth” that explicitly targets digital assets.
At the same time, the right-wing Union of Republics (UDR) has proposed a bill to create a national Bitcoin reserve of approximately 420,000 BTC, aiming to hold 2% of the total Bitcoin supply over the next seven to eight years.
One measure would treat virtual currency holdings as taxable idle ballast. The other is to elevate them as national reserve assets. Taken together, they represent France’s contradictory but consequential stance on cryptocurrencies, caught between fiscal prudence and financial ambition.
New wealth tax: Cryptocurrency as “unproductive” capital
Under the amendment drafted by MoDem MP Jean-Paul Mattei and amended by Socialist MP Philippe Brun, a flat tax of 1% will apply to net taxable assets over €2 million. Importantly, the tax base has been expanded to include traditionally exempt assets, such as collectible cars, artwork, luxury ships, and “numerical assets” (digital assets), including virtual currencies.
The explanatory text specifies that previously excluded “tangible personal property…digital assets…life insurance contracts on funds not allocated to productive investments” will now fall under the “non-productive” category.
Therefore, French residents with a sizeable cryptocurrency portfolio may be subject to annual tax even if they do not sell it. Critics say this risks penalizing investments in digital finance by taxing potential profits rather than realized income. The move has sparked a fierce backlash across France’s crypto industry, with executives warning that it would place trading desks and asset management units under more lenient jurisdiction.
Bitcoin Reserves: The Convergence of Nation Stacking and Sovereignty
In parallel, the UDR, led by Eric Ciotti, submitted a “proposal” to create a public entity responsible for building a national Bitcoin reserve of 420,000 BTC.
The report lays out a blueprint that includes state-funded mining, the acquisition of seized coins, and the option to pay taxes in cryptocurrencies. The bill presents Bitcoin as a strategic asset that connects energy, monetary independence, and digital infrastructure. Invoking the language of sovereignty, the authors describe Bitcoin as “digital gold” that can shore up national reserves in an era of de-dollarization.
The proposal faces long odds in a divided parliament, but reflects a growing trend within Europe’s right-wing parties to see Bitcoin as a form of national strategy rather than speculation.
What is less discussed is how far the text goes in sketching the mechanisms of accumulation. The bill directs the Bitcoin Strategic Reserve Bureau, a newly created public agency, to acquire 2% of the total Bitcoin supply (approximately 420,000 BTC) within seven to eight years and at no direct cost to the national budget.
It lists potential funding routes, including mining using state-owned surplus electricity, transferring cryptocurrencies confiscated from judicial proceedings, and even redistributing dormant public deposits such as the Libret A Savings Scheme.
The proposal would also allow French citizens to pay certain taxes in Bitcoin, introduce a €200 per day exemption for euro stablecoin payments, and incorporate the use of cryptocurrencies at both the treasury and retail levels. These details show that the bill’s ambitions extend far beyond symbolism, as it envisions integrating Bitcoin into France’s fiscal and monetary structures, from energy monetization to everyday payments.
At first glance, these two efforts seem contradictory. One penalizes private crypto accumulation, the other incentivizes public savings. However, legally they can coexist.
While the wealth tax amendment targets personal balance sheets, the reserve bill concerns state balance sheets. Publicly traded stocks will likely be exempt from taxation, and private holders will be subject to annual valuation and reporting requirements. In practice, tensions will surface through market influences.
Taxing cryptocurrency holdings could raise the cost of private accumulation and shrink domestic supply, thereby increasing the cost of acquiring reserves. Conversely, aggressive state accumulation will tighten liquidity, increase the tax base of private investors, and force governments to navigate the feedback loops they have created.
Between policy contradictions and precedent
The French approach places France at the intersection of two world models. Wealth-based taxes on cryptocurrencies have already been introduced in Switzerland, Spain and Norway, where digital assets are declared and valued annually. These systems tax the stock of wealth rather than realized profits, and France’s new framework follows in that lineage.
In contrast, Paris sits alongside experiments like El Salvador, although the idea of a sovereign Bitcoin reserve is filtered through a European lens of institutional control rather than executive order.
The French industry’s reaction was swift and ruthless. Start-ups and exchanges have warned that the proposed reform treats cryptocurrencies as decorative wealth rather than working capital, equating them with yachts and watches. They say annual mark-to-market requirements create liquidity strains and valuation uncertainties.
For policymakers, the counterargument is based on precedent. Wealth taxes have long targeted unproductive capital, and modern tax laws already apply mark-to-market accounting to some financial instruments.
The French industry’s reaction was swift and ruthless. Start-ups and exchanges have warned that the proposed reform treats cryptocurrencies as decorative wealth rather than working capital, equating them with yachts and watches. They say annual mark-to-market requirements create liquidity strains and valuation uncertainties.
Politically, the contrast is equally stark. The wealth tax reform bill was pushed forward by an unusual coalition of centrists, socialists, and far-right politicians. At the same time, the UDR preliminary bill comes from a small conservative faction with little influence in Congress.
If the tax were to pass, France would tighten its grip on private equity holdings while shelving its reserve dreams. If both go ahead, the result will be paradoxical. Private cryptocurrencies would be treated as taxable luxury goods, and state-owned Bitcoin would be upgraded to a national asset. Each may work independently, but together they will change the way France values and manages digital assets.
For now, both proposals remain in flux. The wealth tax document will be sent to the Senate, where lawmakers could refine the definition of a “number law” or introduce carve-outs for productive use. The Bitcoin Reserve Bill awaits committee referral and discussion.
Whatever their legislative fate, they are already setting the tone for France’s next chapter in digital finance. In other words, a country that is prepared to tax cryptocurrencies like works of art while considering hoarding them like gold.
