Bpifrance, the French state-owned bank, is making a strategic move to invest €25 million ($27 million) in cryptocurrencies, with the aim of bolstering local blockchain and crypto initiatives.
The focus is on nurturing French projects in emerging technologies such as decentralized finance (DeFi), staking, tokenization, and AI. In return for its backing, Bpifrance will receive tokens from these ventures. This initiative, endorsed by the French Ministry of Economy and Finance, seeks to enhance the country’s blockchain landscape and ensure its competitiveness in a rapidly evolving global market.
While the global blockchain ecosystem continues to grow at a rapid pace, Bpifrance pointed out that the participation of French funds remains limited. This new investment initiative is intended to help bridge that gap. Clara Chappaz, France’s digital and AI minister, emphasized the importance of both public and private funding to position the nation at the forefront of global technological advancements.
Arnaud Caudoux, Bpifrance’s deputy CEO, echoed these sentiments, stressing the increasing relevance of blockchain companies and the need for France to increase its digital asset presence, especially in light of the U.S. accelerating its own crypto strategy.
Bpifrance has been active in the blockchain space for years, having invested over €150 million ($162 million) in blockchain-related projects, including its early support of Ledger, the crypto hardware wallet maker, in 2014. More recently, the bank began experimenting with token investments, such as its 2022 acquisition of Morpho’s DeFi token. This token has since grown significantly, ranking as one of the top protocols in the space.
The increasing appetite for crypto-related investments is also reflected in the venture capital space, where crypto deals are projected to surpass $18 billion this year. These investments often involve purchasing tokens from crypto platforms, which typically come with lock-up periods, ensuring that early investors cannot immediately sell the tokens. However, liquidity from public sales of tokens can cause market volatility.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/france-allocates-millions-to-support-local-crypto-and-blockchain-initiatives/