A group of lawmakers has set out to make France consider Bitcoin mining, particularly as a means to manage its massive electricity system and strengthen its energy sovereignty.
A legislative proposal to that end has been put forward in Paris, and its authors hope the government will accept to assess the potential of crypto-related activity in other areas as well.
While countries around the world have either tried to suppress cryptocurrency mining, as was the case with China a few years ago, or let it grow, like the United States, for example, France is yet to make up its mind about the industry and what it wants from it.
France trying to find its place in the crypto mining space
Several members of the French parliament have decided to speed up the decision-making process in Paris. They are now suggesting the country should estimate the potential of Bitcoin mining, at least as a tool to improve the management of power generation.
France may well be taking a step toward the pro-mining camp, the French crypto news outlet Journal du Coin noted in an article on Saturday. The piece is devoted to the lawmakers’ attempt to trigger a debate on the matter in the National Assembly.
On Friday, the group of parliamentarians presented a draft amendment to the law on “National programming and regulatory simplification in the energy sector” that requires the government to assess if France needs to develop domestic Bitcoin mining and report back to the legislature.
The key goal of the motion is to study whether the minting of digital currencies could be employed as a means to better manage the EU nation’s electricity system, the largest in Europe.
The sponsors of the bill elaborated:
“This amendment aims to objectify, through an evaluation report submitted to the Parliament, the conditions under which Bitcoin mining could be used as a tool to serve the French electricity system.”
France is the leading producer and exporter of electrical energy in the region, largely due to its massive nuclear power sector. The latter accounts for over 70% of its generated electricity, with renewables and fossil fuels providing the rest.
Bitcoin mining can help utilize surplus electricity in France
Another debate that has been going on in the French society is how to make the largely state-owned nuclear power industry more efficient. A big part of it is the need to optimize the management of the surplus electricity production.
The authors of the new legislation believe that Bitcoin mining can provide a unique solution as “it is highly flexible” and “has no impact on the continuity of supply.” In that regard, they are highlighting some of its “technical advantages.”
Crypto mining machines can be started and stopped quickly and activated 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 bring abandoned industrial sites back to life and strengthen the country’s energy sovereignty while supporting innovation.
The report sums up the positives of cryptocurrency mining in France:
“In short: 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 MPs remarked.
The amendment has been developed in partnership with ADAN, France’s Association for the Development of Digital Assets. The industry organization has been a driving force behind proposals concerning the regulation, taxation, and mining of cryptocurrencies in the country.