Today in crypto: France invests $27M to boost blockchain

France bets on blockchain with $27M investment

France is making a bold move to position itself as a global blockchain leader. The country’s public investment bank, Bpifrance, has announced a $27 million investment directly into tokens and decentralized technologies. The ambitious plan aims to bolster the French blockchain ecosystem and help local crypto startups thrive in a rapidly evolving global market.

Arnaud Caudoux, Deputy CEO of Bpifrance, unveiled the strategy during a blockchain-focused event in Paris. "We are convinced of the growing importance that these players will take on in the years to come, and we want to increase French competitiveness and presence in the field of digital assets," he said.

The investment marks one of the first times a major state-backed bank has committed to buying open-market crypto tokens. Unlike traditional financial support mechanisms like grants or loans, Bpifrance’s new fund will target blockchain-native models with a distinctly French footprint. The focus will be on decentralized finance (DeFi), staking, tokenization, Layer 1-3 protocols, AI-driven tools, and digital ID solutions.

A wake-up call from across the Atlantic

France’s crypto push comes as the United States accelerates its own blockchain ambitions under President Donald Trump. Since his re-election, Trump has made bold moves to establish the U.S. as the "undisputed Bitcoin superpower." His administration has pushed forward initiatives like creating a strategic Bitcoin reserve and rolling back SEC enforcement against crypto firms.

Caudoux made it clear that France is paying close attention to the U.S. crypto pivot, saying, "The U.S. is really accelerating its own crypto strategy, so this is all the more important." With blockchain talent and capital increasingly drawn to America, France wants to ensure it remains competitive.

To make this happen, Bpifrance’s new initiative will prioritize investing in smaller, newly issued tokens from French projects that are yet to be listed on exchanges. This strategy aligns with the bank’s goal of fostering grassroots innovation rather than backing only established players.

Building on a strong foundation

Bpifrance has been a longtime supporter of blockchain technology. Back in 2014, the bank-backed Ledger, a global leader in hardware wallets, as one of its first crypto investments. Since then, it has funded several blockchain projects, including Aleph.im, Morpho, and ACINQ.

In 2023, Bpifrance's Blockchain & Crypto Lead Ivan de Lastours highlighted the potential of zero-knowledge proofs in verifying authenticity within a world increasingly dominated by AI-generated content. These proofs are a promising way to ensure trust and transparency, particularly as AI systems become more integrated into blockchain applications.

The French government has also been proactive in adopting blockchain-based solutions, including using decentralized technology for secure voting and digital identity verification. This latest investment signals a continued commitment to pioneering digital finance solutions.

French crypto scene: A balancing act

While the investment news is promising, France’s crypto ecosystem has recently faced some challenges. Earlier this year, the French government launched a judicial investigation into Binance over allegations of money laundering and tax fraud. The country’s gambling regulator, ANJ, has also started probing Polymarket, a crypto prediction market platform, for possible non-compliance with French gambling laws.

The heightened scrutiny has led to some apprehension within the local blockchain community. Still, Bpifrance’s decision to invest directly into tokens reflects confidence in the long-term potential of decentralized technology, despite regulatory hurdles.

Viral fake Trump video fuels crypto debate

Meanwhile, a poorly rendered fake video of Donald Trump allegedly revealing the Bitcoin whitepaper in the Oval Office has gone viral. In the edited clip, Trump theatrically unveils a framed copy of Bitcoin: A Peer-to-Peer Electronic Cash System while Fox News host Laura Ingraham looks on.

The video, which has been flagged as manipulated by Meta and community notes on X, was spliced from a recent Fox News segment where Trump showcased a copy of the Declaration of Independence. Despite being clearly fake, the video has sparked conversations about Trump’s real-world crypto stance.

Since returning to office, Trump has actively promoted the U.S. as a crypto-friendly nation. His administration has created a strategic Bitcoin reserve and dismissed several high-profile enforcement actions against major crypto firms like Kraken, ConsenSys, and Crypto.com. These moves signal a significant pivot from the previous administration’s more cautious stance.

Tether’s unconventional investment strategy

In other news, stablecoin giant Tether has announced two major investments unrelated to the crypto industry. The company revealed that it had acquired a controlling 70% stake in Latin American agricultural firm Adecoagro and a 30.4% stake in Italian media company Be Water.

Tether CEO Paolo Ardoino framed the moves as part of a broader strategy to support infrastructure, technology, and economic freedom. "Our investment aligns with Tether's broader strategy to back infrastructure, technology, and businesses that advance economic freedom and resilience," Ardoino said.

Tether’s aggressive investment approach follows a record year of profitability, with over $13 billion in net profits for 2024. The company has diversified its portfolio in recent months, including stakes in Bitcoin mining companies and video platforms like Rumble.

While some in the crypto community have raised eyebrows at Tether’s seemingly unrelated ventures, Ardoino insists that the strategy is rooted in creating long-term economic resilience, especially in regions that lack traditional financial infrastructure.

Bitcoin miners pivot to AI

In the mining sector, companies are responding to falling profits by shifting their focus to AI data centers. With the most recent halving event cutting rewards in half, miners are looking to repurpose their infrastructure to support artificial intelligence workloads.

Speaking at the Mining Disrupt conference in Florida, Fog Hashing CEO Paul Li emphasized the need to adapt to the growing demand for compute power. "In the long term, [AI] is a big trend. We cannot miss that," he said.

Miners are finding that some of their skills translate well to AI data center operations, but the transition isn’t straightforward. Unlike Bitcoin mining, where operations can temporarily pause without consequence, AI data centers must remain continuously active. This means higher operational costs and increased infrastructure complexity.

Crypto regulation shifts under Trump

The Trump administration’s crypto policy has taken a more relaxed approach, dismissing enforcement actions against Kraken, ConsenSys, and Cumberland DRW. Acting SEC Chairman Mark Uyeda stated that the agency aims to rectify its approach and foster a more transparent regulatory environment.

This significant change in regulatory direction aligns with Trump’s broader vision of making the U.S. the "crypto capital of the world." While the shift has been welcomed by some industry players, it has also raised concerns about adequate consumer protection and potential conflicts of interest.