In the space of one hectic week, France unveiled seemingly contradictory policies.
On October 31, the French National Assembly approved a first-reading amendment rebranding the country’s real estate tax as a broader “tax on unproductive wealth” which now explicitly covers digital assets.
At the same time, the right-wing Union des droites pour la République (UDR) has introduced a bill to establish a national Bitcoin reserve of approximately 420,000 BTC, with the aim of holding 2% of the total Bitcoin supply over the next seven to eight years.
One measure considers crypto assets as useless ballast that should be taxed; the other elevates them to national reserves. Taken together, they reflect France’s contradictory but consistent attitude towards crypto, caught between fiscal prudence and monetary ambition.
The new wealth tax: crypto as ‘unproductive’ capital
Under the change drafted by MoDem MP Jean-Paul Mattei and revised by Socialist MP Philippe Brun, a flat tax of 1% would apply to net taxable assets over €2 million. Crucially, the tax base is now broadening to include traditionally exempt assets such as collector cars, fine art, luxury ships and ‘actifs numériques’ (digital assets), including cryptocurrencies.
The explanatory note specifies that previously excluded “tangible movable property … digital assets … life insurance policies for funds not allocated to productive investments” now fall under the “unproductive” category.
A French resident with a significant crypto portfolio could therefore face an annual tax even if he does not sell. Critics argue that this amounts to taxing latent profits rather than realized revenues, and risks penalizing investments in digital finance. The move has sparked sharp reactions in the French crypto industry, with executives warning it will push trading desks and asset management departments to more lenient jurisdictions.
The Bitcoin Reserve: State Stacking Meets Sovereignty
At the same time, the UDR, under the leadership of Éric Ciotti, has a “propose the law“establishing a government agency charged with building a national Bitcoin reserve of 420,000 BTC.
Reports detail a blueprint of state-funded mining, the acquisition of seized coins and an option to pay taxes in cryptocurrency. The bill presents Bitcoin as a strategic asset that connects energy, monetary independence and digital infrastructure. The authors invoke the language of sovereignty and portray Bitcoin as “digital gold” that can strengthen national reserves in an era of de-dollarization.
While the proposal offers little opportunity in a fragmented parliament, it reflects a growing trend within Europe’s right-wing parties, which sees bitcoin not as speculation but as a form of statecraft.
What is less discussed is how far the text goes in outlining the mechanisms of accumulation. The bill directs the newly created public entity, Réserve stratégique de bitcoins, to acquire 2% of the total Bitcoin supply (approximately 420,000 BTC) within seven to eight years, and to do so at no direct cost to the state budget.
It lists potential financing channels such as mining with surplus electricity from the state, transferring confiscated cryptocurrencies from legal proceedings and even redistributing dormant public deposits such as those in the Livret A savings program.
The proposal would also authorize French citizens to pay certain taxes in Bitcoin and introduce a €200 per day exemption for euro stablecoin payments, embedding the use of cryptocurrency at both the treasury and retail levels. These details indicate that the ambition of the bill goes far beyond symbolism, as it integrates Bitcoin into the French fiscal and monetary architecture, from energy generation to daily payments.
At first glance, the two initiatives appear to be in conflict, with one punishing private crypto accumulation and the other encouraging public hoarding. However, legally they can coexist.
The wealth tax amendment targets individual balance sheets, while the reserve bill covers those of the state. Public holding companies would likely be exempt from the tax regime, leaving private owners to bear the annual valuation and reporting obligations. In practice, the tension would surface through market effects.
Taxing crypto holdings increases the cost of private accumulation and could reduce domestic supply, which in turn increases the cost of acquiring the reserve. Conversely, aggressive state accumulation would tighten liquidity and inflate the tax base for private investors, forcing the government to navigate the feedback loop it created.
Between policy paradox and precedent
The French approach places the country at the crossroads of two global models. A wealth-based tax on cryptocurrencies already exists in Switzerland, Spain and Norway, where digital assets are declared and valued annually. These systems tax wealth, not realized profits, and France’s new framework follows that line.
The idea of a sovereign Bitcoin reserve, on the other hand, juxtaposes Paris with experiments like El Salvador’s, albeit filtered through a European lens of institutional management rather than a presidential decree.
The response from the industry in France was swift and unflattering. Startups and exchanges warn that the amendment treats crypto as decorative wealth rather than working capital, equating it with yachts and watches. According to them, annual mark-to-market obligations cause liquidity problems and valuation uncertainty.
When it comes to policymakers, the counterargument rests on precedent: wealth taxes have long targeted unproductive capital, and modern tax law already applies market value to some financial instruments.
The response from the industry in France was swift and unflattering. Startups and exchanges warn that the amendment treats crypto as decorative wealth rather than working capital, equating it with yachts and watches. According to them, annual mark-to-market obligations cause liquidity problems and valuation uncertainty.
Politically, the contrast is just as sharp. The wealth tax amendment was passed with an unusual coalition of centrists, socialists and far-right deputies. At the same time, the UDR reserve law comes from a small conservative bloc with little parliamentary influence.
If the tax passes, France will tighten its grip on private companies while putting aside the reserve dream. If both make progress, the result would be paradoxical: private cryptocurrencies are treated as taxable luxuries and state-owned Bitcoin elevated to sovereign wealth. They could all function independently, but together they would change the way France values and controls digital assets.
For now, both proposals remain in flux. The text on the wealth tax goes to the Senate, where lawmakers can refine the definition of “actifs numériques” or introduce exceptions for productive uses. The Bitcoin reserve bill awaits committee referral and debate.
Whatever their legislative fate, they have already set the tone for France’s next chapter in digital finance: a nation ready to tax crypto as an art while considering stacking it like gold.
