The EU is finally breaking the ground in terms of creating a uniform regulation of the blockchain. Recent times have been full of activity as the European Union sought ways of hastening the process of fully adopting blockchain.
One of the major milestones that have been achieved is the launch of the Distributed Ledger Technology (DLT).
The formation of the European Union Observatory and Forum by the European Commission marked the first step of the many that will lead to the full embrace of the blockchain. The new organization has also hit the ground running, with three reports tied to it being released since it was formed in February 2018. In addition to the reports, another huge step that was observed recently ins the signing of a declaration by several EU countries to create a European Blockchain Partnership (EBP). This partnership will be handling issues of interoperability, privacy, energy efficiency, and other issues in the blockchain industry.
All recent reports have shown that there is a huge commitment in the region to raise investments in the market significantly. The positive attitude by the countries in the region is as a result of increased activity by the regulatory direction that the EC has taken. The increased growth of the security tokens industry has also contributed to the positive outlooks. The liberalization of the industry is, however, a particular issue that has created a lot of buzz in the market. Not to mention, the European Parliament has also had a great role to play in improving the status of blockchain adoption. The parliament outlined key areas that will get prioritized in the economy and they include the health sector and financial services. Some other areas that will be covered include:
- Data Protection
- Transport
- Education
- Public Governance
The Health Sector
The EU has shown its resolve to support the health sector from the get-go. One of the first projects supported by the body was My Health My Data (MHMD). This project, which was started last year, has an aim of making it easier to transmit medical data via the blockchain. The project will also allow the collaboration between private and public entities in the health sector. Of course, the main issue that the EU has decided to focus on is ensuring the safety of personal data. With the General Data Protection Regulation (GDPR) already in place, the benefits of transparency will be achieved without exposing the private details of people.
The EU sees the health sector as one of the most important in the region. The improvement of the process of sharing data is seen as a major step towards the realization of an interconnected Europe.
The Financial Services Sector
Another major industry that is being impacted by the DLT is the financial services sector. This sector will see many benefits that will come as a result of the streamlining of financial services. Because of recent regulatory directives, the EC will now take an active role to monitor how the DLT is being implemented. One of the issues that have been raised by the European Parliament is the concern of the volatile nature of cryptocurrencies. The European Parliament has sought to bring about a proper framework for blockchain by requiring the European Central Bank (ECB) and the EC to give feedback on the nature of cryptocurrencies in the market.
Issues like investor protection and the development of proper guidelines for ICO issuers are some of the key items that have been prioritized by the parliament. It is expected that once the proposals put forward are considered, issues like illegal trade and lack of consumer protection will not arise.
The Future of Blockchain in Europe
Aside from the many decisions that are being made by entities like the EU parliament, the market is also reacting to the positive developments. Several major companies in the industry have come up with an association that seeks to promote the growth and agenda of blockchain in Europe. Some of these companies include Emurgo, Ripple and the NEM Foundation. While the EC focuses on developing blockchain frameworks across the different countries in Europe, the companies are hoping to influence the direction that the regulation takes. A number of southern European countries have also recently signed a declaration that basically supports the use of DLT. Europe is therefore clearly looking to lead the world when it comes to using DLT to offer services to citizens.
