France’s center-right UDR party introduced a major pro-crypto bill today, calling for a national Bitcoin reserve to secure financial sovereignty.
A comprehensive pro-crypto bill will be tabled in the French Parliament today. The initiative is being sponsored by the Union of the Right and Centre (UDR) party. Lawmaker Eric Ciotti takes the legislative proposal straight ahead. This is the first time such a detailed cryptocurrency text has been introduced in France. Therefore, the bill is a huge political moment.
Reserve Plan Seeks to Acquire 420,000 BTC as ‘Digital Gold’
Under the initiative, a National Bitcoin Strategic Reserve needs to be set up immediately. Moreover, the bill seeks to brand bitcoin as a form of “digital gold.” This strategy aims to reinforce the financial sovereignty of France in general. Furthermore, the proposal recommends diversifying the existing foreign exchange reserves now. At the end, this is an effective way to protect the economic future of the country.
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Specifically, the proposed legislation is to obtain a huge amount of BTC. The target is up to 2% of the total supply of Bitcoin in the world. This amounts to approximately 420,000 BTC in the long run. As a result, this process of acquisition would take seven to eight years constantly. Therefore, the total effort requires a very strategic approach.
The bill proposes the creation of Public Administrative Establishment (EPA) directly. This new entity would manage and house the large reserve in a secure environment. In addition, the text describes some innovative ways of funding in the immediate. For example, public mining would make good use of excess nuclear power. This also includes storing all Bitcoins confiscated in the legal process.
Furthermore, substantial savings amount is envisaged under this bill. Specifically, a quarter of funds coming from the Livret A savings scheme would be used now. This would cover the purchase of BTC on the secondary market on a daily basis. This amounts to the acquisition of about 55,000 BTC per year. Moreover, the bill proposes to issue tax payments in Bitcoin right now.
New Proposal Sets €200 Daily Limit for Tax-Free Stablecoin Payments
In addition, they provide strong encouragement in the legislative text for the use of euro-denominated stablecoins. The proposal acknowledges the immediate credibility of stablecoins as an alternative. It sets out to directly attack the current Visa-Mastercard payment system. As a result, the bill proposes regulated consumer daily use. Thus, it creates a new avenue for digital transactions.
It is specifically that the bill proposes a ceiling on daily payments of 200 euros now. These payments using stablecoins would be tax-free. Furthermore, the proposal calls for opposing the Digital Euro (CBDC) in particular. The lawmakers consider the CBDC to be centralizing and dangerous to financial freedom. Therefore, this provides a clear policy objective at the EU level.
Moreover, the bill addresses the local energy and financial barriers. It aims to support the development of the French Crypto industry effectively. The proposal adapts the taxation of electricity for the mining operations currently. This includes the creation of a dynamic excise duty on the basis of tiers. Additionally, it integrates crypto-assets into the PEA in the form of ETNs easily.
The bill also calls for revisions to prudential rules in Europe immediately. This change would adapt risk weighting regarding crypto-backed loans to be consistent. In the end, this would render “Lombard” loans backed by crypto possible now. However, the bill is facing huge political hurdles in the Parliament directly. The UDR party holds a few seats in general.
The post Bitcoin News: France to Propose Bill for National Bitcoin Strategic Reserve appeared first on Live Bitcoin News.
