The balloon financial deficiency of the central French bank can motivate a new wave of currency printing, which potentially unlocks the billion -billions of new capital for Bitcoin.
French central bank, Banque de France (BDF), reported a loss of 7.7 billion euros ($ 8 billion) in fiscal year 2024, is largely driven by a negative interest income on the net due to high interest payment, according to a press release Na -Published in March 2025.
It brought the French government shortage to more than 168 billion euros ($ 176 billion) in 2024, representing 5.8% of the country’s gross domestic product (GDP), which significantly exceeds the 3% European Union limit.
The central French bank is now among the worst performers of Bloc, with a shortage of capital signing from the country.
Arthur Hayes, co-founder of the cryptocurrency exchange Bitmex, believes France’s financial deficiency can enabilize the “euro trillion” of European Central Bank (ECB) monetary printing, which signed fresh liquidity that flows into Bitcoin (Btc).
“French capital is leaving France. And if you look at the big change of any other member, this is the worst,” Hayes told Cointelegraph in an interview with token2049 in Singapore. “The real threat is the French capital leaving for German and Japanese investors in their home markets, as the US is changing the world’s succession.”
“That’s what the ECB predicts to print now or print later on the euro trillion. And that’s the size of the combined -with it,” Hayes said. “Another good thing for crypto.”
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ECB is either printing “now or later”
Around 60% of France’s bonds and debt are owned by foreign creatures, including Germany and Japan are the two largest bondholders.
But with the US investment, German and Japanese capital has previously been financially French budget no longer flows, Hayes said.
“My thesis is basically the prints of the ECB now, or they print later, and in both cases, they lose control, because in both cases, people will prefer either default, repair, make capital controls, print money, have a way of life.”
According to Hayes, the ECB may later print to try to save the European Banking System Oi -Print now to enable France’s spending. “There is no other choice,” he said.
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Growing French fiscal deficiency may motivate the ECB to pivot to Volume easing (qe).
In 2022, Bitcoin benefited from QE’s announcements from some of the world’s largest banks, such as the US Federal Reserve.
Bitcoin price increased by more than 1,050% during the last period of volume, from just $ 6,000 in March 2020 to $ 69,000 in November 2021, following the Fed’s $ 4 bond purchase program was the purchase of bond bond announced During the Covid-19 Pandemic on March 23, 2020.
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