France has approved a bill that allows insurance markets to invest in cryptocurrencies. According to a report by FXStreet, the new law allows life insurers to invest in cryptos “without any limitation on the amount that can be allocated.”
The new law is known as Pacte (Plan d’action pour la croissance et la transformation des enterprises). It translates to “action plan for the growth and transformation of enterprises” and it aims at raising cash to boost the economy. According to a report by Reuters, 147 lawmakers in France voted for the law, with only 50 opposing it.
A dual provision of the act will allow other insurers to invest in crypto as well. They will do this through specialized professional crypto funds. In passing the Pacte law, the national assembly noted that it would be the first product of its kind in Europe and hoped it would become an instant hit.
While the Pacte law will have a huge impact on the crypto industry in France, cryptos weren’t the main target. According to deputy and budget manager of president Emmanuel Macron’s party Joel Giraud, the law is meant to help boost the French economy and prepare the country for the digital future. Among the other provisions of the law is a wave of privatizations of state institutions. They include a sale of the state’s stake in ADP, the country’s airports operator. The proceeds will form an innovation fund that will invest in new technology.
France has been one of the leaders in Europe in the blockchain and crypto industry. The country’s president, Macron recently urged European nations to increase their attention to blockchain technology especially in supply chain management. He pledged to lobby for an EU task force to enforce the use of blockchain technology, in an effort to fight fraud in supply chains.
And it’s not just the president that’s campaigning for the industry. The recent wave of Yellow Vest protests has seen a large number of protestors campaigning for crypto. In one instance, a large mural of French painter shows him holding a burning 100 euro note. Interestingly, the mural includes a QR code that redirects people to a Bitcoin Core (BTC) page.
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