Currency in France

The designated currency of France is the euro.

The currency recognized as the euro is identified by the symbol €, and its three-letter code is EUR.

Before France adopted the euro (EUR), the official currency was the French franc (F). Administered by the Bank of France, the franc comprised 100 subunits known as 'centimes.'

Coins were issued in denominations of 1, 5, 10, and 20 centimes, as well as 0.5, 1, 2, 5, 10, and 20 francs. Banknotes were available in 20, 50, 100, 200, and 500 franc denominations.

The French Franc, originating from the Carolingian monetary system in the 8th century AD, can be traced back to the Livre Tournois, a currency that emerged in the 13th century. The Livre Parisis and the Livre Tournois underwent various changes in terms of silver and gold values until the introduction of the French Franc in 1795.

Emperor Charlemagne introduced a monetary system in 781 AD, with a Livre of silver divided into 20 Sols and the Sol divided into 12 Deniers. The first Livre and Denier weighed 407.92 g and 1.7 g of the finest silver available.

The Capetian dynasty, around the year 1000, issued Livres and Deniers containing 305.94 g and 1.27475 g of fine silver, respectively. The French Mark of 8 ounces was introduced, weighing 244.752 grams.

The Livre Tournois gained prominence during the reign of King Louis IX, particularly with the issuance of the silver Gros tournois in 1266. This coin, valued at 1 Sol, became popular in Western Europe.

In 1361, during the Hundred Years' War, the Gros Tournois was minted at 15 deniers Tournois, and gold Francs worth 1 Livre Tournois were introduced.

The reign of Louis XI in 1475 saw further debasements, leading to the issuance of the silver Gros at 1⁄9th the Livre Parisis. The 16th century witnessed additional debasements during the Valois-Angoulême kings' rule.

King Louis XIII implemented a currency reform in 1641, introducing the silver Écu and replacing the Franc à cheval with the Franc à pied.

The 18th century saw the introduction of the gold Louis d'Or, and by 1795, the Livre Tournois was replaced by the French Franc, set at a rate of 1 Franc = 1+1⁄80 Livres.

The French Revolution in 1795 established the decimal Franc as the national currency, with 1 Franc equal to 10 décimes or 100 centimes.

During the 19th century, France participated in the Latin Monetary Union, adopting a common currency based on the Franc germinal. However, World War I led to France leaving the gold standard, causing a decline in the Franc's value.

World War II saw the Franc as a satellite currency of the German Reichsmark during the Nazi occupation. Post-liberation, the French Franc returned.

After World War II, France devalued its currency multiple times. In 1960, the Nouveau Franc was introduced, with 100 existing Francs equaling one Nouveau Franc.

France joined the Economic and Monetary Union in 1999, fixing the exchange rate of the Franc to the Euro. The Euro replaced the Franc on January 1, 2002, marking the end of the French Franc as legal tender.

In France, crypto assets are categorized as moveable assets, and the General Directorate of Public Finances (DGFiP) treats them similarly to stocks, bonds, and other capital assets. Despite not holding the legal status of a currency, crypto assets are acknowledged as a medium of exchange.

According to DGFiP, any financial gains or capital gains derived from the disposal of crypto assets are subject to taxation as ordinary income. The tax implications are contingent on how the crypto assets were acquired and utilized.

Taxable events in France occur when converting crypto assets to fiat currency or when receiving profits from activities such as cryptocurrency mining. Notably, taxes are not levied on the purchase, trade, swap, or exchange of crypto assets among wallets.

The tax liability varies based on whether an individual is classified as a professional trader or an occasional investor. Professional traders and occasional investors may be subject to different tax rates, impacting the amount of tax owed.