Did you know that Cryptocurrencies are the most successful sector in the FinTech field in France and Germany? This is revealed in a recent report published by Finch Capital, an investment fund specialized in FinTech based in Amsterdam.
According to the report, titled “State of European FinTech”, Europe, The Middle East and Africa (EMEA) region saw a 50% drop in FinTech investments in the first half of 2023. The total funding amount fell from USD 27.3 billion in the first half of 2022 to USD 11.2 billion in the same period of 2023.
However, Cryptocurrency companies stand out in the bigger picture, occupying an important position in the investments attracted in several major markets. In the United Kingdom, the blockchain and Cryptocurrency sector represented 28% of all FinTech transactions in the first half of 2023. This number is even higher in the Netherlands, where it reaches 35% of all transactions. In Germany and France, the share of Cryptocurrencies represents 27% and 29%, respectively..
The main competitor to Cryptocurrencies is the lending sector, which turned out to be the market share leader in Ireland and across the region in terms of transaction volume.
This data demonstrates that investor interest in the digital economy is strong, despite bearish trends in FinTech as a whole. According to another recent report, 24% of asset management firms have adopted a digital asset strategy, and an additional 13% plan to do so in the next two years.
Additionally, some Cryptocurrency companies are still reporting significant profits. For example, European digital asset manager CoinShares revealed total revenue of £20.3 million ($25.9 million) in the second quarter of 2023, an increase of 33% compared to the same quarter a year earlier.
France Fintech and Binance drive innovation
To support the development of the French and European blockchain and Cryptocurrency ecosystem, France Fintech and Binance have announced the launch of a €100 million initiative.
France Fintech is a non-profit association that aims to promote the excellence of the fintech sector in France and abroad and represent French FinTech companies before public authorities, the regulator and the ecosystem. Binance is a Cryptocurrency exchange platform that offers services such as trading, staking, lending, mining and education.
The initiative is called “Objective Moon” and will finance three key blockchain and Cryptocurrency innovation projects in France:
- The Binance R&D center in France, which will be dedicated to the research and development of blockchain-based technological solutions for various sectors such as health, energy, mobility or agriculture.
- The DLT (decentralized accounting technology) accelerator, which will offer financial, technical and legal support to startups developing projects based on blockchain or Cryptocurrencies.
- The online education program, which will provide free courses on blockchain and Cryptocurrencies to train French and European talent in these subjects.
Binance founder and CEO Changpeng “CZ” Zhao announced the initiative at a conference with Cedric O, Minister of State for Digital Transition and Electronic Communication in France, at the French Ministry of Finance in Paris.
Alain Clot, President of France Fintech, expressed his enthusiasm for the collaboration with Binance and stated that France is in a unique position in terms of regulation, talent and experience to be the leading player in Europe in the field of decentralized finance.
Cryptocurrencies are a booming sector in the Fintech field in France and Germany, and also in other European countries. Investors see great potential in the digital economy and are betting on innovative projects based on blockchain and Cryptocurrencies. France Fintech and Binance have launched a €100 million initiative to boost innovation and education in this field, which could benefit the entire ecosystem.