In what may seem like an unexpected move, French publicly funded investment bank Bpifrance has entered the crypto space with an investment in hardware wallet manufacturer Ledger. The bank is exploring new opportunities in the Web3 landscape, particularly Zero-Knowledge (ZK) proofs, and has expressed interest in AI investment. Ivan de Lastours, Blockchain & Crypto Lead at Bpifrance, shared that ZK proofs may be crucial to the future of the internet. As AI-generated deep fakes become more prevalent, these cryptographic techniques could verify the authenticity of digital content.
Bpifrance, with a public mandate but operating under a private credit license, had its first crypto investment in Ledger. This marked their confidence in French innovation within the global blockchain sphere. Over the last year, the institution pumped €80 billion into the French economy in various forms and has been targeting the growing crypto and blockchain ecosystem in France, consisting of around 450 startups.
Aside from being a mere fund provider, Bpifrance plays the role of a publicly funded advocate for the French crypto ecosystem, helping companies navigate the country’s unique legislative and economic aspects. This assistance has benefited over 170 blockchain startups, including notable names like Kaiko and Acinq. Bpifrance’s collaboration with legislators has also shaped a crypto-friendly regulatory climate in France.
Despite market fluctuations, the bank’s strategy remains consistent – offering continuous support and recognizing the distinctive dynamics of the French market. Focusing on the strengths of France in the crypto scene, it is acknowledged that the nation excels in DeFi and NFTs, thanks to its rich creative culture and flourishing gaming and luxury goods sectors.
However, there is an air of caution amidst the excitement. The recent announcement of an investigation against Binance France for charges like “aggravated money laundering” could potentially impact the local crypto ecosystem. Investing in Web3 remains a high-risk activity, which is demonstrated by De Lastours’ recent response to not investing in FTX – considering it a timely reminder to be diligent and cautious.
In conclusion, Bpifrance’s foray into the crypto space signifies the growing interest and potential of French innovation in the global blockchain realm. Their investments in AI and their ever-present support for the local crypto ecosystem speak of a bright future. However, it is crucial to tread carefully, given the rapidly changing market dynamics and various risks in the sector.
Source: Decrypt
