CIMUN Chronicle / Article / 2016

The Rise of Cryptocurrency in France

IPD Article Image - The Rise of Cryptocurrency in France

By: Joe Allom-Perez, The Chronicle

France is crossing the bridge to legally using and regulating the use of cryptocurrency. One of the driving factors to convince the leaders of France to use this new system was Brexit. They hope to attract foreign investors and bring them to Paris (according to Medium). The French government understands that the use of cryptocurrency, such as Bitcoin, needs to be monitored and regulations need to be applied. Illegal use of cryptocurrency is very common around the world; however, they see the great potential it has for the economy and they don't want to be absent from the rise of the industry.

Two leading French government officials seem to be supporting the cryptocurrency revolution. The most surprising one of the two is French Finance Minister, Bruno Le Maire. He has taken a complete u-turn on his views as now, this tweet he posted shows him fully supporting it. He states “We will not miss the blockchain revolution!” The second is the French President Emmanuel Macron. Who seen in the photograph below, is holding a bitcoin hardware wallet (as stated by CNN). “The highest court of administration, the Council of State [including the president], determined that cryptocurrency profits are considered “moveable property” and therefore subject to a lower tax rate than had previously been imposed, rewriting rules that had been in place since 2014.” (as written by CNN). So as a result, on April 27, 2018, it was revealed that France drastically lowered the  Cryptocurrency tax rate from 45 percent to a flat 19 percent.

The Minister of Finance sums up what France’s intentions are with the industry of cryptocurrency reasonable well in another one of his tweets. “We agree that crypto-assets can be very interesting for everyone. And we – obviously – are in favour of blockchain technology, which can provide very good support to financial assets in Europe or anywhere in the world. We are in favour of these technologies, but we want these technologies to be secure, and therefore we need to define very clear measures for their regulation.