The European Union will invest a whopping €150 billion ($177 billion) in emerging technologies, including blockchain, the underlying technology for cryptocurrencies such as bitcoin (BTC). Bloomberg news agency reported this on September 15:
The EU will invest in blockchain and high-performance computing as part of a multibillion-euro push to stoke technology development https://t.co/ZG9eq87U8G through @crypto
— Bloomberg Crypto (@crypto) September 15, 2021
The €150 billion is one-fifth of the €750 billion stimulus package launched last summer and is aimed at kick-starting the economy in Europe after the corona pandemic.
Other technologies that will receive a direct investment from the EU by 2030 are: data infrastructure, low power processors, 5G communications, quantum computing, public administration, digital innovation and digital skills.
It is unknown what percentage is invested in each sector. The investment is also focused on computer chips and to ramp up semiconductor production after massive shortages emerged earlier this year. It caused several major car manufacturers to shut down their production.
In related news, the European Securities and Markets Authority (ESMA) recently indicated that the growth in crypto shows that investors are willing to take more risks. That goes hand in hand with such a trend in the stock market, as with GameStop (GME) stocks, and with low interest rates.
The regulator therefore wants to introduce a clearer and stricter regulatory framework. ESMA also monitors the decentralized finance (DeFi) market and reports that while the sector has fallen slightly from its peak in May, the sector has grown by a staggering 1,200% over the past year.
🔴 #ESMA highlights risk of market corrections in uneven recovery, increased risk taking of investors and the materialization of event risks such as #Gamestop, #Archegos and Greensill.
🆕 ESMA second 2021 Trends, Risks and Vulnerabilities Report out → https://t.co/RDWVanNBtN7. pic.twitter.com/SUld8c4RA0
— ESMA – EU Securities Markets Regulator 🇪🇺 (@ESMAComms) September 1, 2021
“Rising valuations across asset classes, massive price swings in cryptocurrencies and event-driven risk observed in the first half of 2021 amid increased trading volumes raise questions about increased risk behavior and potential market exuberance.”