For decades, European wealth has been measured in gold and bonds. Two of the world’s largest economies are now preparing to add something new to their strategic vaults.
This week, news broke that political leaders in Germany and France have each submitted proposals to establish national Bitcoin reserves, a move that could redefine the structure of national reserves.
This is the first serious attempt by a major European country to treat Bitcoin as a sovereign asset.
Bitcoin reserves in France and Germany
The French initiative was first and surprisingly detailed.
On October 28, United Republican Party (UDR) Chairman Eric Ciotti outlined an ambitious plan to accumulate up to 420,000 BTC over seven to eight years, about 2% of Bitcoin’s fixed supply.
The next day, Germany’s Alternative for Germany (AfD) was reported to have submitted a motion suggesting that Berlin consider a national Bitcoin strategy as a hedge against inflation and geopolitical instability.
Together, these efforts mark something unprecedented and the beginning of a European Bitcoin reserve race. This could reshape the continent’s monetary identity and challenge gold’s dominance in national asset allocation.
Bitcoin Reserve Proposal Details
Germany’s motion is directly based on the central bank reserve principle.
This suggests that Bitcoin’s decentralized issuance and predictable supply make it a natural complement to gold, especially as European economies face sustained inflation and a weak euro.
Moreover, Bitcoin’s characteristics reflect broader themes of monetary sovereignty and technological progress, positioning Bitcoin as a long-term reserve that can protect national balance sheets from systemic shocks.
The motion does not specify the size of the purchase, but analysts suggest it could be in the billions of euros, especially when compared to US reserve talks and El Salvador’s precedent.
The French approach, on the other hand, is more ambitious and institutional.
Ciotti’s UDR party has proposed creating a Bitcoin Strategic Reserve Fund under the supervision of the Treasury Department.
Under the plan, France will accumulate 420,000 BTC from 2025 to 2032 through a phased dollar-cost averaging acquisition strategy. This approach is designed to reduce the risk of volatility while strengthening national sovereignty.
Under this plan, funding for accumulation will be raised through four main channels:
- Public mining projects that utilize surplus nuclear power and hydroelectric power generation,
- Holding judicially seized Bitcoins without liquidation;
- Allocate 1/4 of daily inflows from Livret A and LDDS savings accounts. This equates to approximately 15 million euros of Bitcoin purchases per day.
- There is also an option for citizens to pay their taxes in Bitcoin, creating organic inflows to on-chain.
The bill aims to build a national “digital gold” reserve. This diversified, uncorrelated hedge aims to modernize France’s asset mix while reducing its dependence on the dollar.
This text connects Bitcoin accumulation to the broader principle of monetary sovereignty. This clearly positions BTC as an antidote to dollar-based global finance and a facilitator of France’s financial independence within the European Union.
Why do these countries need Bitcoin reserves?
The timing is no coincidence. Germany and France both face growing fiscal pressures within the euro area, energy dependence and currency fluctuations.
For policymakers, Bitcoin provides a symbolic and potentially practical tool for financial autonomy in times of geopolitical uncertainty.
For the AfD, the initiative is consistent with its broader nationalist message of reducing dependence on the European Central Bank and insisting on control of domestic reserves. In the case of France, this framework is more pragmatic and focuses on integrating Bitcoin into the national holdings as part of the digital transformation of finance.
The two proposals also highlight deep philosophical divisions within Europe.
Meanwhile, technocratic policymakers in Brussels continue to view cryptocurrencies through the lens of regulation and risk.
Meanwhile, an emerging group of parliamentarians sees digital sovereignty as the basis for insulating countries from both US financial domination and the eurozone’s structural weaknesses.
Anna, Cryptocurrency Analyst at Sovereign Stash, explained that this development is a natural evolution of the market.
“Bitcoin’s core theory is being confirmed. The world is slowly rotating towards scarcity, ownership, and sovereignty.”
Strategic logic of Bitcoin reserves
For much of the past century, gold has served as the ultimate hedge against inflation and currency devaluation. Central banks held it for profit and as symbolic insurance proof of solvency and independence. Bitcoin currently occupies a similar narrative space.
Unlike fiat reserves, BTC cannot be devalued or seized by foreign powers and has a finite supply, making it a potential inflation hedge for nations managing ballooning debts.
Additionally, its on-chain verifiability provides transparency benefits not found in traditional reserve assets.
If France goes through with its plan to acquire 420,000 BTC, it would instantly become the largest sovereign holder of Bitcoin, surpassing all corporate treasuries and even the US government’s seized holdings. At current prices, that allocation is worth more than $25 billion, roughly equivalent to 15% of France’s gold reserves.
Such accumulation could also impact Bitcoin’s macro liquidity profile. Even a 1-2% allocation by G20 countries could absorb millions of BTC from circulation, potentially tightening supply and causing a long-term price revaluation.
However, strategic advantages come with well-known risks such as market volatility, custodial security, and political views associated with holding digital assets, which are often associated with retail speculation.
Still, a Deutsche Bank report predicts that Bitcoin will coexist with gold on central bank balance sheets by 2030, citing lower volatility and wider acceptance of BTC as a legitimate non-sovereign reserve asset.
