With the French presidential elections scheduled to take place this Sunday, we look at what financial views the two candidates have might mean for Bitcoin and its community. The contenders undoubtedly are very different, with Marine Le Pen being a far-right firebrand and Eurosceptic and, on the other hand, Emmanuel Macron who is a centrist and in favor of market liberalization and growing the French economy.
Euroscepticism = “Au Nom du Peuple”?
Le Pen has also publicly stated her stance against Bitcoin, a currency that could play a vital role upon the possible withdrawal of France’s withdrawal from the European Union and the reintroduction of the Franc. Le Pen sees the euro as a political weapon to force countries to implement the policies. In addition to her anti-immigration and anti-EU rhetoric, Le Pen seeks to ditch the single currency for a looser type of cooperation much like the European Currency Unit (ECU) basket of currencies prior to the euro.
If France does pull a Frexit, Bitcoin will experience a surge beyond record levels in terms of price. The uncertainty regarding the value of Euro and Franc would increase demand in the cryptocurrency the following day of the Frexit referendum. A similar trend was noticed at the back of the UK’s leaving the EU when the price of bitcoin experienced a 25% hike from the day before Brexit to the next.
High stakes for Macron
As France’s Minister of Economy, Industry and Digital Data, Emmanuel Macron expressed his support for the blockchain technology in advancing infrastructure sectors critical to the French society. The socially liberal former banker Macron wants to embrace globalization. Macron believes that France’s economy should double down on free trade to become more competitive. In the wake of the first round’s voting, the euro and the European stock markets surged to an all-time high since last November following the news that Macron is the front runner.
ith a background in banking and finance, his agenda is to spend €50 billion over five years in transportation, health, energy and the environment. With France’s underwhelming economic performance and unemployment at 10%, there is a lot of weight on Macron’s shoulders. If Macron fails to deliver his promises, the Front National will be a stronger challenge for the 2022 presidency.
As with Brexit and Trump’s victory in the US, the euro is expected to see heavy volatility and fluctuating prices. If the situation feels a little bit like a dejavu, this is because it is. Despite early statistics showing Macron leading the polls, uncertainty remains strong across the country and worldwide of how France’s future would look like.
Hundreds of thousands of workers and immigrants currently residing in France are sending billions across borders to support their families with remittances. Percentage of deposits and money transfer fees could eat directly into the savings of many affected families. Billions in business revenues and trade are also expected to be affected because of the elections.
The alternative solution
Bitcoin, a decentralized currency that runs on the blockchain technology, stands as a more reliable and efficient method of sending money abroad. Bitcoin and the underlying technology behind it allows you to send money to your family and make payments abroad while dodging hefty fees that often come with money transfers across borders.
Despite the growing rate of Bitcoin adoption, level of Bitcoin acceptance remains low in many cities of the world. People and business worried about the economical outcome of the French elections can still enjoy full access and control over their money by using Bitcoin. By using the blockchain technology, Bitwala enables people and businesses to easily use Bitcoin for everyday finances for a low and fixed fee.