Crypto News: European Banks Waking Up To Crypto, Time to Level The Playing Field?

The digital currency ecosystem, pioneered by Bitcoin, has evolved over the years. Initially, traditional finance institutions such as banks and investment houses were skeptical of crypto assets.

With the passage of time and growth of the crypto sector, institutional adoption is now shifting considerably.

Crypto News: Bpifrance’s Bold Step into Crypto

One traditional institution that recently embraced cryptocurrency is Bpifrance, France’s state-owned investment bank.

According to a crypto news report report, Bpifrance is set to spend $26.95 million (€25 million) on cryptocurrencies.

Although the names of the cryptocurrencies were not specified, Bpifrance is choosing little-known crypto coins as part of its effort to support the nation’s crypto business.

The decision to directly purchase cryptocurrencies is significant in the state-owned institution’s history.

In the past, Bpifrance had invested about €150 million in projects related to blockchain.

Commenting on the development, Clara Chappaz, France’s Minister Delegate in charge of AI and Digital described it as a move in the right direction.

Chappaz emphasized it is a signal of the direction France wants to take in becoming excellent in the crypto sector.

The minister’s comments suggest that more European banks are becoming interested in digital currency, like their counterparts in America.

Revolut, a British multinational bank and fintech company established in 2015, has integrated crypto trading into its platform. Users can trade and hold digital assets like Bitcoin and Ethereum.

However, reports show that despite acknowledging the increasing relevance of crypto services, only a small fraction currently offer them.

With the European market lagging compared to their US counterparts, perhaps the EU’s Market in Crypto-Assets Regulation (MiCA) could support the projected adoption.

It would be interesting to see how banks respond to the evolving needs of customers want exposuret to crypto in the region.

The Trump Effect

Interestingly, since U.S. President Donald Trump’s return to the White House for a second term, there has been a massive awakening to cryptocurrency.

The president has shown support for the crypto sector and recently attended the Digital Asset Summit in New York.

Donald Trump was recognized as the first sitting U.S. president to do so. Trump has assured his administration will overhaul policies.

This shift has triggered more American businesses and banks to go all out for crypto as observed in multiple recent crypto news reports.

Notably, the U.S. created a Strategic Crypto Reserve with a pledge to make the country the crypto capital of the world.

Many industry stakeholders in America are looking to join this evolution. As a complement, the U.S. Congress is pushing for a new crypto regulation system to oversee stablecoins and the crypto market structure.

Notably, a bipartisan Congressional Crypto Caucus was launched specifically for this purpose.

Their task is to put forward crypto-friendly legislation to guide key stakeholders. These lawmakers are likely to present a finalized regulation to President Trump for signing in April.

This regulatory push is poised to drive the adoption of the coin in the region and it remain unclear how the EU counterpart will catch up.

Europe’s Slow Crypto Adoption—Can MiCA Help?

Given the pace at which cryptocurrency adoption is growing in the U.S., it is imperative for Europe’s financial firms to follow in the same footsteps.

For instance, U.S. banks such as JPMorgan Chase and Goldman Sachs have actively integrated blockchain services and cross-border payments.

Most of the top banks even have exposure to spot Bitcoin ETFs, a shift that is now gaining traction.

The EU financial institutions need to leverage the opportunities created by MiCA’s regulatory framework. This could also involve collaborating with global partners to expand services.

One thing is certain: the U.S. is determined to emerge as a leading player in cryptocurrency.

How financial institutions in Europe fare will depend on their willingness to join the crypto adoption race.