The stones look irregularly spaced and I can't imagine a government would place them on a coin that has so little value.
The coin is probably real currency and someone decided to make it unique so added the stones. Perhaps a hobbyist, maybe an artist.
We can't tell what the coin is made from via the photo, but I assume it's metal (maybe copper or a mixture)and not some form of plastic? If it's plastic then it's not a coin at all, just a replica.
The reason it's not magnetic is because it contains no iron. It's likely an alloy of copper and zinc or tin
The coin looks real and the condition looks to be excellent. I would need to know the date and exactly what each side says to see if I could come up with a value. If the stones are semi-precious, it would have a very good value. If they are glass, they would add no value to the coin. Sorry, I could not help more but, it would look nice if you wore it on a chain around your neck.
It was "demonetized" in 1935, so it was not money any more. My mother had a bracelet from the 1940s with coins made into a bracelet. So there was probably a trend at the time turning money into jewelry. Not valued now. If the jewel-like gems are diamonds, maybe those are worth something. Check at a jeweler's.
Someone may have decorated some French currency:
http://en.numista.com/catalogue/pieces67...
