France’s parliament is at present navigating a starkly divided method to bitcoin, concurrently advancing a wealth tax on digital belongings and a proposal to construct a considerable nationwide bitcoin reserve.
Wealth tax targets bitcoin holders
On October 31, the French Nationwide Meeting authorised an modification extending the nation’s actual property wealth tax to a broader “tax on unproductive wealth,” which now explicitly consists of digital belongings like bitcoin.
The amended tax, drafted by MP Jean-Paul Mattei and revised by MP Philippe Brun, would impose a 1% levy on internet taxable wealth above €2 million, masking not solely property but additionally collectibles and cryptocurrencies.
The measure means French residents with vital bitcoin holdings may face annual taxation, even with out promoting their cash.
Business critics argue this penalizes funding, warning it may drive buying and selling and asset administration operations overseas.
Proposal for a nationwide bitcoin reserve
In distinction, the right-wing Union des droites pour la République (UDR) has launched a invoice to determine a public bitcoin reserve, aiming for France to build up 420,000 BTC—about 2% of bitcoin’s complete provide—inside seven to eight years.
The proposal outlines state-funded mining, acquisition of seized cash, and even the choice for residents to pay taxes in bitcoin.
The invoice emphasizes nationwide sovereignty and positions bitcoin as “digital gold” for the republic. Detailed mechanisms within the invoice embody utilizing surplus electrical energy for mining and reallocating dormant public deposits to fund the reserve.
Coverage paradox emerges
These two measures, whereas seemingly contradictory, may legally coexist: the wealth tax targets particular person holdings, whereas the reserve invoice considerations state accumulation.
Nonetheless, the mixture may tighten home provide and improve prices for each personal and public bitcoin acquisition.
The proposals have sparked robust reactions from France’s bitcoin business, which warns the tax treats bitcoin as idle luxurious moderately than productive capital.