France Considers Bitcoin Mining to Manage Electricity System

A group of lawmakers in France has proposed that the country consider Bitcoin mining as a means to manage its extensive electricity system and bolster its energy sovereignty. A legislative proposal has been introduced in Paris, with the hope that the government will evaluate the potential of crypto-related activities in various sectors.

France is currently undecided on its stance towards the cryptocurrency mining industry, unlike other countries that have either attempted to suppress it, such as China, or allowed it to grow, like the United States. Several members of the French parliament have taken the initiative to expedite the decision-making process in Paris. They suggest that France should assess the potential of Bitcoin mining, at least as a tool to enhance the management of power generation.

France may be leaning towards the pro-mining camp. The lawmakers have presented a draft amendment to the law on “National programming and regulatory simplification in the energy sector.” This amendment requires the government to assess whether France needs to develop domestic Bitcoin mining and report back to the legislature. The primary goal is to study if the minting of digital currencies could be used to better manage France’s electricity system, the largest in Europe.

The sponsors of the bill explained that the amendment aims to provide an objective evaluation report to the Parliament on the conditions under which Bitcoin mining could serve the French electricity system. France is a leading producer and exporter of electrical energy, largely due to its extensive nuclear power sector, which accounts for over 70% of its generated electricity, with renewables and fossil fuels providing the rest.

Another ongoing debate in French society is how to make the largely state-owned nuclear power industry more efficient. A significant part of this is the need to optimize the management of surplus electricity production. The authors of the new legislation believe that Bitcoin mining can offer a unique solution as it is highly flexible and has no impact on the continuity of supply. They highlight some of its technical advantages, such as the ability to start and stop crypto mining machines quickly and activate them on demand, depending on production and consumption peaks. Bitcoin farms can be installed near production facilities, even in the most isolated areas.

Furthermore, the lawmakers are convinced that building a low-carbon crypto mining sector in France, under the supervision of public authorities, could revitalize abandoned industrial sites and strengthen the country’s energy sovereignty while supporting innovation. The report summarizes the benefits of cryptocurrency mining in France, stating that it is an activity that can adapt to the constraints of the electricity system, absorb energy surpluses, reduce negative prices on wholesale markets, and relieve the burden on nuclear power plants by avoiding overly frequent modulation cycles, which accelerate wear and tear on the installations.

While the upcoming parliamentary debate on the amendment is just a first step that needs to translate into concrete actions by the French government, the evaluation process will help inform future policy choices based on energy sovereignty, industrial innovation, and network resilience. The amendment has been developed in partnership with ADAN, France’s Association for the Development of Digital Assets, which has been a driving force behind proposals concerning the regulation, taxation, and mining of cryptocurrencies in the country.