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Bitcoin Updates: France and South Korea Invest in Bitcoin "Digital Gold" to Compete with Dollar Supremacy in International Finance

Bitcoin Updates: France and South Korea Invest in Bitcoin "Digital Gold" to Compete with Dollar Supremacy in International Finance

Bitget-RWA2025/10/29 04:34
By:Bitget-RWA

- France's UDR party proposes a 420,000 BTC national reserve (2% of total supply) to diversify foreign exchange holdings and reduce U.S. dollar stablecoin dependence. - Funding would come from public mining surpluses, seized Bitcoin, and savings from state-backed financial products like the Livret A, with tax payments in Bitcoin requiring constitutional approval. - South Korea launches KRW1, a won-pegged stablecoin on Avalanche blockchain, to reduce foreign stablecoin reliance and boost cross-border transa

France's bold approach to

and stablecoin regulation is causing a major transformation in Europe's financial policies, as legislators seek to reshape the region's digital asset environment. In a significant development, the Union of the Right and Center Party (UDR) has introduced a bill to create a national Bitcoin reserve equal to 2% of the total Bitcoin supply—around 420,000 BTC—to be accumulated over seven to eight years. If enacted, France would become the first country in Europe to recognize Bitcoin as a "digital gold" reserve, with the goal of diversifying its foreign reserves and decreasing reliance on stablecoins tied to the U.S. dollar, according to . The proposal, led by UDR President Éric Ciotti, also includes the possibility of accepting Bitcoin for tax payments, though this would need constitutional changes. The reserve would be funded through surplus energy allocated for public mining, Bitcoin seized in legal proceedings, and a share of savings from popular government-backed products like the Livret A, as reported by .

The UDR's initiative goes further than Bitcoin, targeting Europe's dependence on stablecoins backed by the U.S. dollar. The party's proposal criticizes the European Central Bank's (ECB) strict policies on euro-backed stablecoins, which currently represent only 1.2% of the global stablecoin market, compared to 91% for dollar-based tokens such as

(USDT) and USD Coin (USDC), as highlighted in the Yahoo News report. François Villeroy de Galhau, governor of France's central bank, has previously cautioned that Europe's slow action could increase its reliance on non-European digital currencies. The UDR's resolution urges changes to the Markets in Crypto-Assets (MiCA) regulation to support euro stablecoin development and calls for relaxed Basel prudential standards, which currently label crypto-backed loans as high-risk and require capital reserves of up to 1,250%, a concern also raised in the Yahoo News article.

Bitcoin Updates: France and South Korea Invest in Bitcoin

At the same time, South Korea has made a similar move by introducing KRW1, its first stablecoin pegged to the won. Created by BDACS and backed by reserves at Woori Bank, KRW1 runs on the

blockchain and seeks to lessen dependence on foreign stablecoins while improving the efficiency of international transactions, according to . This initiative fits into South Korea's broader strategy to regulate digital assets, with the upcoming General Act on Digital Assets set to establish formal rules for stablecoin management and use.

France's plan to build a Bitcoin reserve faces notable political obstacles, as the UDR controls only 16 out of 577 seats in parliament, making it difficult to pass the legislation, Coinpedia noted. Nevertheless, the proposal has found support among crypto enthusiasts, including Capital B, France's pioneering Bitcoin treasury, which already possesses more than 2,249 BTC, according to

. This initiative also mirrors a wider movement toward institutional Bitcoin adoption, with companies like Germany's Aifinyo AG and South Korea's Bitplanet recently unveiling their own Bitcoin treasury strategies, as covered in the same Yahoo News report.

As countries compete to secure financial independence in the digital era, the actions of France and South Korea highlight a growing agreement: the trajectory of global finance may depend on how effectively cryptocurrencies and stablecoins are woven into national economic systems.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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