French bank Bpifrance invests $27 million in little-known cryptocurrencies

French bank Bpifrance invests $27 million in little-known cryptocurrencies

French state-owned bank Bpifrance has decided to invest $27 million in "little-known" digital assets in an effort to support the development of local cryptocurrency projects. The move comes on the back of its previous investment of €150 million ($161.8 million) in blockchain-related businesses. Bpifrance thus becomes one of the first state-owned banks to focus on less established cryptocurrencies, rather than investing in dominant players such as Bitcoin.

According to Arnaud Caudoux, deputy CEO of Bpifrance, the fund aims to focus on newly created tokens before they are launched on cryptocurrency exchanges. "As the United States accelerates its crypto strategy, it is important to make sure that France is not left behind in this global race," Caudoux said.

The bank plans to invest in blockchain projects that have a "strong French footprint" and cover areas such as decentralised finance (DeFi), tokenisation, betting and artificial intelligence. The move is in line with France's efforts to strengthen its position in cryptocurrencies and innovative technologies.

Clara Chappaz, the French minister in charge of digital and AI technologies, hailed the initiative as a strong signal of France's commitment to becoming a leader in new technologies. "Bpifrance's initiative is an important step for France to excel in cryptocurrency innovation," she added.

In addition, Bpifrance has already piloted traditional investments in 2022, including a collaboration with lending platform DeFi Morpho. Clearly, the bank is looking to adapt to the rapidly changing cryptocurrency landscape and attract the attention of talented engineers and companies that could play a key role in the future European ecosystem.

The announcement of the fund comes just a week after French Finance Minister Eric Lombard announced the launch of a €450 million ($490 million) defence fund. Bpifrance thus continues to confirm its role as a major player in supporting French public policy and innovation in digital technology.

*This is not an investment recommendation.

Coingarage team