If you’re wondering if bitcoin will ever attain wide-scale adoption, look no further than France. French insurance companies can soon include cryptocurrencies in life insurance contracts, thanks to a vote by France’s National Assembly.
Pact Act Swings Door Open for Insurance Companies to Invest in Crypto
Deputies overhauled the Insurance Code via the Pact Act, with Article 21 swinging open the door for life insurance contracts to invest in specialized professional funds (SPFs), whose investment parameters have reportedly been “relaxed” as a result of yet another provision. Article 26 gives the SPFs the freedom to invest in blockchain-backed assets. Simmons & Simmons Attorney Emilien Bernard-Alzias told local publication Les Echos:
“With these two provisions, it is written in black and white that SPFs can invest in cryptocurrencies like bitcoin.”
Meanwhile, with no cap on the amount of crypto a life insurance policy can hold, French locals have a chance to bolster the value of their policies in the bitcoin bull market.
Bitcoin Integration More than a Year in the Making
Bitcoin didn’t make its way into France’s life insurance market overnight. Policymakers alongside entrepreneurs and companies worked together for more than a year to make the rule change happen. In the end, investing in crypto is a byproduct of the updated code, not necessarily the intention. Nonetheless, it could set the stage for other jurisdictions to follow suit as France gains a first-mover advantage. Assemblymember Joel Giraud is cited in Les Echos as stating:
“This was not the primary goal of Pact, but insurers will actually be able to offer products based on crypto-assets. They will be able to do so through specialized funds,” stated
Assemblymembers adopted the measure in recent days, with 147 votes in favor, 50 votes against, and 8 abstentions. The vote, however, reflects only about one-third of the 577 seats comprising the Assembly. Economy Minister Bruno Le Maire was pleased with the results.