France Is Considering a Bitcoin Reserve. Here's Why That's Extremely Bullish.

Core Insights - France is considering a proposal to establish a national Bitcoin reserve, aiming to acquire approximately 2% of the total Bitcoin supply over the next eight years [3][4] - The proposal includes retaining seized Bitcoin rather than auctioning it, and exploring public mining using surplus nuclear and hydropower [5] - If implemented, this move could tighten Bitcoin supply and potentially influence other countries to adopt similar policies [3][7] Supply Impact - The proposed national reserve would target ownership of about 420,000 Bitcoin, which represents around 2% of the capped supply of 21 million [4] - With approximately 95% of Bitcoin already issued, the establishment of a national reserve would position France among the largest holders of Bitcoin, comparable to major corporate treasury holders [6] Market Implications - The initiative could lead to increased demand for Bitcoin, as the tightening of supply may drive prices higher, similar to the impact of corporate holders like MicroStrategy [6] - The ability for citizens to pay taxes in Bitcoin and stablecoins could further integrate Bitcoin into the economy, enhancing its legitimacy [5]