- For the first time, the European Investment Fund (EIF) has backed a fund authorized to invest in blockchain and digital currencies.
- Fabric Ventures has secured $30 million from the European Investment Fund (EIF).
- With this move, the EU receives some exposure to emerging technologies.
Blockchain and digital assets entrepreneurs in the European Union find it hard to get funding in this relatively new space. However, with the European Investment Fund (EIF) supporting a new blockchain and digital assets fund, that stance may be evolving.
Fabric Ventures, a Luxembourg-based venture capital that invests in scalable decentralized networks, has secured $30 million from the European Investment Fund (EIF) in a funding round aimed at raising a total of $130 million. Other prominent backers of the blockchain fund include officials from Google, PayPal, Square, and Ethereum.
This marks the first time the EIF has backed a fund authorized to invest in blockchain technology and digital currencies. Alain Godard, chief executive at EIF, said:
We are very pleased to be partnering with Fabric Ventures to bring to the European market this fund specializing in Blockchain technologies. This partnership seeks to address the need [in Europe] and unlock financing opportunities for entrepreneurs active in the field of blockchain technologies — a field of particular strategic importance for the EU and our competitiveness on the global stage.
When comparing the EU to the United States and China, the union has been behind in terms of supporting innovations, particularly in the blockchain and decentralized industry. However, with this move, the EU receives some exposure to the emerging technologies that can also avail it against the centralized powers coming from its rivals.
Could the EU Become a Crypto Hub?
With the United States aggressively calling crypto innovation the “wild west” and China cracking down on the industry, a supportive stance from the EU could make it the next crypto hub.
Richard Muirhead, a co-founder and managing partner at Fabric Ventures, said EIF’s involvement in the new fund is of great significance as it gives the project recognition. “The thing to note here is that there’s a recognition at European Commission level that this area is one of geopolitical significance for the EU bloc,” he said.
Muirhead further added that he believes the EU would not follow the footprints of the US and China in dealing with the crypto industry. “The European Commission, I think, believes that there is a third way for the individual, and to use this new wave of technology for the individual,” he said.
A couple of weeks ago, the European Central Bank (ECB) launched the investigation phase of its digital euro project. The bank allocated a total of 24 months to this phase which primarily would work on the design and distribution components of the digital euro.