For decades, European wealth was measured in gold and bonds. Now two of the largest economies are preparing to add something new to their strategic vaults.
This week, news emerged that political leaders in Germany and France have each introduced proposals to establish a national Bitcoin reserve, a move that could redefine the architecture of state reserves.
This marks the first serious attempt by major European countries to treat BTC as a government bond.
The Bitcoin reserves of France and Germany
France’s initiative came first and was remarkably detailed.
On October 28, Éric Ciotti, president of the Union de la Droite Républicaine (UDR), said outlined an ambitious plan for the country to accumulate up to 420,000 BTC in seven to eight years, approximately 2% of Bitcoin’s fixed supply.
A day later, Germany’s Alternative for Germany (AfD) said reportedly introduced a motion suggesting that Berlin explore a national Bitcoin strategy to protect against inflation and geopolitical instability.
Together, these initiatives signal something unprecedented and the start of a European Bitcoin reserve race. This could reshape the continent’s monetary identity and challenge gold’s dominance in national asset allocation.
Details of the Bitcoin Reserve Proposal
The German motion is directly based on the central bank’s reserve principles.
It suggests that Bitcoin’s decentralized issuance and predictable supply make it a natural complement to gold, especially as European economies struggle with persistent inflation and a weakening euro.
Furthermore, Bitcoin’s characteristics reflect broader themes of monetary sovereignty and technological advancement, positioning the asset as a long-term reserve capable of protecting national balance sheets from systemic shocks.
While the motion does not specify the size of the purchase, analysts suggest it could be in the billions of euros, especially when compared to US reserve talks and El Salvador’s precedent.
On the other hand, the French approach is more ambitious and institutional.
Ciotti’s UDR party proposes creating a Bitcoin Strategic Reserve under the supervision of the Ministry of Finance.
According to the plan, France would accumulate 420,000 BTC between 2025 and 2032 through a gradual acquisition strategy based on dollar costs. The approach aims to reduce volatility risk while strengthening national sovereignty.
According to the plan, financing for the accumulation would be obtained through four main channels:
- Public mining operations using excess nuclear and hydropower energy,
- Holding judicially seized Bitcoins instead of liquidating them
- Allocation of a quarter of daily inflows from Livret A and LDDS savings accounts – equivalent to approximately €15 million per day in Bitcoin purchases,
- And the ability for citizens to pay taxes in Bitcoin, creating an organic inflow into the chain.
The bill aims to build a national ‘digital gold’ reserve. This diversified, uncorrelated hedge would aim to reduce France’s dependence on the dollar while modernizing the composition of its assets.
The text links Bitcoin accumulation to a broader doctrine of monetary sovereignty. It explicitly positions BTC as a counterbalance to dollar-based global financing and as an accelerator of France’s financial independence within the European Union.
Why do these countries want a Bitcoin reserve?
The timing is not coincidental. Both Germany and France face increased fiscal pressure, energy dependence and currency volatility within the eurozone.
For their policymakers, Bitcoin offers a symbolic and potentially practical tool for financial autonomy in an era of geopolitical uncertainty.
For the AfD, the initiative is in line with the broader nationalist message of reducing dependence on the European Central Bank and exerting control over domestic reserves. For France, the formulation is more pragmatic and focused on the integration of Bitcoin into state-owned enterprises as part of the digital transformation of the financial world.
The twin proposals also highlight a deeper philosophical divide within Europe.
On the one hand, technocratic policymakers in Brussels continue to view cryptocurrencies through the lens of regulation and risk.
On the other hand, an emerging group of lawmakers see it as the basis of digital sovereignty, capable of insulating countries from both US monetary dominance and the eurozone’s structural weaknesses.
Anna, a crypto analyst at Sovereign Stash, described the developments as a natural evolution of the market:
“Bitcoin’s core thesis is confirmed. The world is slowly turning towards scarcity, ownership and sovereignty.”
The 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 kept it for profit and as a symbolic assurance of their proof of solvency and independence. Bitcoin now occupies a similar narrative space.
Unlike fiat reserves, BTC cannot be devalued or seized by foreign powers, and its limited supply makes it a potential inflation hedge for states managing their rising debts.
Moreover, their verifiability in the chain offers a transparency advantage that traditional reserves lack.
If France were to follow through with its plan to acquire 420,000 BTC, it would immediately become the largest sovereign holder of Bitcoin, surpassing all corporate government bonds and even the seized assets of the US government. At current prices, that allocation would be 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 take millions of BTC out of circulation, tightening supply and potentially catalyzing a long-term price revaluation.
Yet the strategic benefits come with the known risks of market volatility, security of custody, and the political optics of holding a digital asset often associated with retail speculation.
Yet a report from Deutsche Bank predicts that Bitcoin will coexist with gold on central bank balance sheets by 2030, citing declining volatility and growing acceptance of BTC as a legitimate, non-sovereign reserve asset.
