French legislators have tendered a number of recommendations aimed at pitching France as a leading force in the crypotocurrency and blockchain industry.
The bills proposed by lawmakers, Jean-Michel Mis and Laure de La Raudiere are in line with a parliamentary mission to explore the implementation of crypto and blockchain technology in France as well as leverage on blockchain technology to streamline routine business processes.
The proposition features a total of 20 recommendations; notably – a proposal to recognize cryptocurrency mining as an ‘electro-intensive activity’ which would allow crypto miners leverage to pay for electricity at their facilities at preferential rates.
Backing up the proposal, Jean-Michel Mis expects that France should offer crypto mining companies favourable conditions to operate within the country. He expressed notion that cryptocurrency miners should be well distributed around the world as the concentration of mining power currently benefits big industry players in China and the U.S. In his words, “We must have our own mining farms here in France.”
Jean’s proposition seems to have logical backing as France utilizes cost-efficient nuclear power for its electricity and energy production. Posing average rates of $0.19 kilowatt per hour, the country’s electricity charge is relatively cheap when compared to many other European nations.
Calls for Blockchain Pro-activeness
Laure de La Raudiere during her presentation warned that France ‘shouldn’t miss the blockchain train’. She states “With the blockchain, we would like France to get ahead this time. France must define a state strategy around the blockchain.” as she gave the parliament’s submission urging the government to allocate EUR 500 million ($568 million) for strategic investment to promote and support the development of the industry over a three year period (2022).
Citing possible sources for the fund, they suggested the allocation of part funds managed by the French Public Investment bank, BpiFrance and the French National Agency for research, ANR, which have been set aside for such projects.
Emphasizing further the importance of blockchain inclusion; Jean remarks:
2019 will be the year of blockchain. This ten-year-old technology is moving out of its experimental stage into industrial implementation. The general public will see the emergence of uses that affect their daily lives.
“2018 was the Year Zero of blockchain popularity in France. The year 2019 must be the emergence of this ecosystem.” He reiterated.
In addition, Jean and Laure re-echoed the stance of some lawmakers at a previous meeting where they had recommended the testing of a digital currency (CBDC) issued by either the European Central Bank or the Bank of France.
General Assertion
Over the course of the past months, France has gradually changed its attitude towards the crypto industry in a very positive direction. Early signs in September had the lawmakers pass into law, set guidelines for ICO’s. Also last month the finance commission of the National Assembly supported an amendment to the 2019 budget which cut down capital gains tax on cryptocurrency sales from 36.2 to 30 percent.
Generally, despite the falling coin prices the cases of cryptocurrency adoption and blockchain tech driven trends in various nations and institutions have greatly increased. This realization is a pointer that cryptocurrency and its underlying technology (blockchain technology) is set for large scale dominance and great potential for the industry.
Considering the infusion of the technology into human beneficial areas and use cases like (supply chain, tax monitoring, charity, rural financing, cross border transactions among others) at these early stages, it is evident that the space and its fundamentals would get better in the long run.
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