For decades, Europe's prosperity has been measured in gold and bonds. However, today, the two leading economies in the region are preparing to add a new type of asset to their strategic reserves.
This week, public opinion is buzzing with information that political leaders in Germany and France have simultaneously unveiled proposals to establish a national Bitcoin reserve fund. This move could completely change the structure of state asset reserves.
This event marks the first time that major European countries truly view Bitcoin (BTC) as a sovereign asset, ushering in a new era for national reserve management.
France and Germany: The Race to Accumulate Bitcoin
France is a pioneer with a notable detailed plan. On October 28, Mr. Éric Ciotti – President of the Republican Right Alliance (UDR) – announced an ambitious plan: France will accumulate up to 420,000 BTC within seven to eight years, equivalent to about 2% of Bitcoin's total fixed supply.
Immediately after that, the Alternative for Germany (AfD) party also proposed that the Berlin Parliament study a national Bitcoin reserve strategy, considering it a measure to prevent inflation and geopolitical instability.
These two initiatives are not only groundbreaking but also mark the beginning of a race to accumulate Bitcoin across Europe, promising to reshape the monetary identity of the old continent and posing a challenge to the dominant position of gold in the national asset structure.
Details of Bitcoin Reserve Proposals
Germany's proposal is based on the core principles of central bank reserves. Germany believes that the decentralization and limited supply of Bitcoin make it an ideal complement to gold, especially in the context of European economies facing persistent inflation and a weakening euro.
In addition, the characteristics of Bitcoin reflect the trend of monetary sovereignty and technological advancement, making this asset a long-term store of value that protects the national balance sheet against systemic shocks.
Although the specific scale of purchases has not been determined, experts believe that the stored value could reach billions of euros, especially when referencing discussions about reserves in the U.S. and precedents from El Salvador.
In contrast, France has chosen a more systematic and larger-scale approach. Mr. Ciotti's UDR party proposed the establishment of a Bitcoin Strategic Reserve Fund under the Ministry of Finance.
According to the plan, France will accumulate 420,000 BTC from 2025 to 2032 through a strategy of periodic purchases, dollar-cost averaging, to minimize volatility risk and strengthen national sovereignty.
The capital is expected to be raised from four main channels:
- Public mining using surplus nuclear and hydroelectric power;
- Retain Bitcoin confiscated by the court instead of liquidating it;
- Withdraw a quarter of the daily cash flow from Livret A and LDDS savings accounts – about 15 million euros each day to buy Bitcoin;
- Allow citizens to pay taxes in Bitcoin, creating a natural on-chain cash flow.
The bill aims to establish a national “digital gold” reserve fund, serving to diversify risk, reduce dependence on the US dollar, and modernize the national asset portfolio.
In particular, this document emphasizes that accumulating Bitcoin is part of the strategy to reinforce monetary sovereignty, positioning BTC as a counterbalance to the dollar-based global financial system, while also promoting France's financial independence within the European Union.
What motivates countries to accumulate Bitcoin?
The proposed timing is not a coincidence. Germany and France are both facing fiscal pressure, energy dependence, and currency volatility within the euro area.
For policymakers, Bitcoin is both a symbolic meaning and a practical tool that helps enhance financial autonomy in the context of geopolitical instability.
With AfD, this initiative aligns with the policy of reducing dependence on the European Central Bank and closely controlling domestic reserves. Meanwhile, France is aiming to integrate Bitcoin into state assets as part of the digital transformation of the financial sector.
The simultaneous emergence of the two proposals also reflects a profound difference in asset management philosophy within Europe.
On one hand, policymakers in Brussels still view cryptocurrencies mainly through the lens of control and risk.
On the other hand, a newly emerging legislative group views this as a foundation for digital sovereignty, helping the country to avoid the influence of the US dollar and to address the inherent weaknesses in the eurozone structure.
Anna, a crypto analyst at Sovereign Stash, stated:
“The core argument of Bitcoin is gradually being affirmed. The world is shifting towards emphasizing scarcity, ownership, and sovereignty.”
Strategic significance of Bitcoin reserves
Throughout the past century, gold has been the optimal hedge against inflation and currency devaluation. Central banks hold gold not only for profit but also as a guarantee of payment capability and financial independence. Now, Bitcoin is gradually becoming part of that story.
Unlike fiat currency reserves, BTC cannot be devalued or seized by foreign governments; its limited supply makes it a potential hedge against inflation for countries facing the burden of public debt.
Moreover, the transparency of Bitcoin, thanks to its on-chain verification capabilities, provides an advantage that traditional reserve assets find hard to achieve.
If France successfully implements the plan to accumulate 420,000 BTC, this country will become the largest Bitcoin owner in the world, surpassing all corporate treasuries and the amount of Bitcoin seized by the US government. At the current price, this amount of Bitcoin is worth over 25 billion USD, equivalent to about 15% of France's gold reserves.
Large-scale hoarding can also impact the macro liquidity of Bitcoin. If G20 countries allocate just 1-2% of their reserves to Bitcoin, it would be enough to pull millions of BTC out of circulation, tightening supply and potentially driving long-term revaluation.
However, this strategic benefit comes with familiar risks such as market volatility, custody security, and political concerns when holding digital assets that are often associated with retail speculation.
Nonetheless, the latest report from Deutsche Bank predicts that Bitcoin will coexist with gold on the balance sheets of central banks by 2030, thanks to decreased volatility and the growing recognition of BTC as a legitimate, non-sovereign reserve asset.
Mr. Teacher
