Will France become Europe's crypto hub?
The news on crypto adoption in France has been piling up lately.
The news on crypto adoption in France has been piling up lately. The country could even become the center of Europe’s blockchain scene.
Crypto and blockchain adoption in France seems to be picking up recently. President Emmanuel Macron may not be a biggest fan of Bitcoin and other cryptos, but he hasn’t missed recognizing the innovation potential of blockchain. France was supposed to become a “startup nation.” Now it’s well on its way there. And the blockchain sector is evolving too.
Since 2017 the sector has enjoyed funding support through a fund run by the Autorité des Marchés Financiers. Startups get extra help through the "Unicorn Research Programme".
This has led to companies like hardware wallet maker Ledger or the fantasy football platform Sorare. With that, the country already shows what it can offer in blockchain. In the meantime, many others are joining them, potentially establishing France as a major player in Europe’s blockchain scene.
A state-backed player in the blockchain sector
France’s 160+ blockchain startups aren’t the only ones cashing in on the shifting crypto landscape. Big domestic firms are also increasingly looking to play a role in the digital revolution.
The best example: Électricité de France (EDF). The country’s largest energy supplier recently announced it is actively running more than 150 Ethereum nodes.
The press release concedes that cryptocurrencies remain a "sensitive topic." Still, it disclosed they have been involved in the sector since 2020. The company now has 300 account points across Ethereum, Polkadot, Cosmos, Avalanche, and Tezos.
Despite government warnings about a lack of regulation and a speculative bubble, the state-backed company is stepping into the blockchain sector for more reasons than one. It also raises the question of which French companies have long been active in the "hidden" sector.
Ripple, Crypto.com, and other crypto players
Also encouraging for France’s crypto ambitions was news around Crypto.com. The crypto exchange announced last week Paris as its new European headquarters. The company plans to invest up to €150 million to boost the blockchain sector there. France beat the UK, which in April announced it wanted to become Europe’s top crypto hotspot.
Like Crypto.com, all digital asset and service providers in France must be registered with the Autorité des Marchés Financiers (AMF). French banking giant Société Générale (SG) also recently joined the list. The country’s third-biggest commercial bank, SG has a balance sheet of 1.46 quadrillion euros. Through its subsidiary Forge, SG will now be able to own, buy, sell, and trade digital currencies — a huge step toward broad adoption in the country.
These and other small milestones clearly suggest France is about to open the doors to the crypto world. With pan-European regulation in the form of the MiCA regulation, more clarity should come to the sector soon.
Emmanuel Macron has handled his pro-innovation approach well so far. Now it’s important for the country to stay on the ball. France is also a strong supporter of a digital central bank currency (CBDC) in Europe, and leans toward strict crypto regulation. The country sits inside influential crypto-regulatory circles worldwide, notably in the Financial Action Task Force (FATF) and in Europe with MiCA. A prohibitive stance could put a damper on any crypto euphoria for France.
Macron has so far taken a deliberately cautious stance on crypto: "I don’t believe in a self-regulating financial sector. That would not be sustainable or democratic. It’s up to the government to set the right conditions so the sector can grow with confidence while encouraging innovation."
