Bitcoin News Today: France & South Korea Stake Bitcoin "Digital Gold" to Challenge Dollar Dominance in Global Finance

France's audacious foray into Bitcoin and stablecoin policy has sparked a seismic shift in European financial strategy, with lawmakers pushing to restructure the continent's digital asset landscape. In a landmark move, the Union of the Right and Center Party (UDR) has proposed legislation to establish a national Bitcoin reserve equivalent to 2% of the total supply—approximately 420,000 BTC—to be amassed over seven to eight years. This would mark France as the first European nation to treat Bitcoin as a "digital gold" reserve, aiming to diversify foreign exchange holdings and reduce dependence on U.S. dollar-backed stablecoins, according to a Yahoo News report. The initiative, spearheaded by UDR President Éric Ciotti, also envisions allowing tax payments in Bitcoin, though this would require constitutional approval. Funding for the reserve would come from surplus energy used for public mining, seized Bitcoin in legal cases, and a portion of savings from popular state-backed financial products like the Livret A, according to Coinpedia.

The UDR's plan extends beyond Bitcoin to address Europe's reliance on U.S. dollar-dominated stablecoins. The proposal criticizes the European Central Bank's (ECB) restrictive stance on euro-backed stablecoins, which currently hold just 1.2% of global stablecoin capitalization compared to 91% for dollar-backed tokens like Tether (USDT) and USD Coin (USDC), as noted in the Yahoo News report. France's central bank governor, François Villeroy de Galhau, has previously warned that Europe's hesitation risks deepening its dependence on non-European digital currencies. The UDR's resolution calls for revising the Markets in Crypto-Assets (MiCA) regulation to facilitate euro stablecoin issuance and easing Basel prudential rules, which currently classify crypto-backed loans as high-risk with capital requirements of up to 1,250%, a point also discussed in the same Yahoo News coverage.

Meanwhile, South Korea has taken a parallel step by launching KRW1, its first won-pegged stablecoin. Developed by BDACS and collateralized by reserves at Woori Bank, KRW1 operates on the Avalanche blockchain and aims to reduce reliance on foreign-backed stablecoins while enhancing cross-border transaction efficiency, according to a Webopedia article. The move aligns with South Korea's broader efforts to establish a regulatory framework for digital assets, with the upcoming General Act on Digital Assets expected to formalize rules for stablecoin custody and usage.

France's Bitcoin reserve initiative faces significant political hurdles, as the UDR holds only 16 of 577 parliamentary seats, complicating passage of the bill, Coinpedia reported. However, the proposal has gained traction among pro-crypto advocates, including Capital B, France's first Bitcoin treasury, which already holds over 2,249 BTC, according to a Yahoo News piece. The plan also reflects a broader trend of institutional Bitcoin adoption, with Germany's Aifinyo AG and South Korea's Bitplanet recently announcing institutional Bitcoin treasury strategies, a development covered in the same Yahoo News piece.

As nations race to assert financial sovereignty in the digital age, France and South Korea's moves underscore a growing consensus: the future of global finance may hinge on the strategic integration of cryptocurrencies and stablecoins into national economic frameworks.