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French insurance companies can now invest in crypto and tokens as per a new law passed by the French government. The news was initially reported by the foreign exchange news agency, FXStreet. The new law put into place by the French government is being seen as a major breakthrough in realizing the potential of cryptocurrencies in the insurance industry.
The bill was passed in the French parliament on April 11 with a vote count of 147 in favor and 50 against it. The bill is designed to stimulate local business development. Named “Plan d’action pour la croissance et la transformation des entreprises,” the bill allows French insurance companies to invest into cryptocurrencies like Bitcoin and Ethereum without any upper limit on the investment.
According to the report, the bill will allow insurance companies to invest in digital currencies through specialized professional funds. Joel Giraud, deputy and budget manager of Emmanuel Macron’s party La République En Marche commented about the law, hoping to clear some air around the meaning and purpose of its passing. He said:
“This was not the primary objective of the Pact, but insurers will be able to offer products based on crypto assets. They will be able to do so through specialized funds.”
It is important to note here that while cryptocurrencies are fair game, that does not mean the blockchain technology is. The law does not specifically mention blockchain. It simply states any “property” that is subject to “registration in a shared electronic recording device” will be considered as an asset that qualifies to be held by a specialized professional fund.
Over the last few months, there have been major development in terms of blockchain and cryptocurrencies adoption. Major banks and governments around the world have shown the intention to utilize the powers of blockchain technology through cryptocurrencies. JPMorgan famously launched its own cryptocurrency and tied it to the US dollar. The United Nations announced their plan to use blockchain to solve the problems of the world while reducing 3rd party costs and increasing the amount that is actually spent in helping people.
Banking, healthcare, and insurance are among the top industries with great potential for the adoption of cryptocurrencies and blockchain technology. And the bill passed by the French government is one big leap towards realizing these hopes.