What happened?
France’s National Assembly passed a resolution rejecting the ECB’s proposed digital euro and instead backing Bitcoin and euro-denominated stablecoins as alternatives. The plan calls for creating a national “Bitcoin reserve” (about 2% of bitcoin supply), supporting euro stablecoins, and nudging banks and rules to favor crypto growth. Lawmakers argued a digital euro would threaten privacy and concentrate power at the ECB, and they want France to push Europe to loosen rules like MiCA and certain Basel standards.
Who does this affect?
This affects French citizens, who the government says could face increased surveillance or frozen funds under a central bank digital currency. It also impacts banks, regulators, and European policymakers because the move challenges the ECB’s plans and pushes for new rules that would let banks and firms issue euro stablecoins and offer crypto services. Crypto companies, stablecoin issuers, and global markets that currently rely on dollar-backed stablecoins could see new competition if France’s ideas spread across the EU.
Why does this matter?
It matters for markets because France’s stance could accelerate institutional demand for Bitcoin and euro-denominated stablecoins, shifting capital away from dollar-backed tokens and increasing crypto volatility. If regulators ease rules or fund a state bitcoin reserve, banks and investors may reallocate deposits and lending toward crypto products, which could reshape liquidity and risk across Europe’s financial system. Overall, the move raises the chance of faster crypto adoption in Europe and could force the ECB and markets to rethink timelines, competition, and who controls money flows.