The companies that surround the world blockchain they are in full swing. The European Blockchain Convention (EBC) held this Monday and Tuesday in a virtual way has witnessed that sensation on its first day. Blockchain is coming of age. Next week the presentation of a European bill that should regulate the use of this technology in the markets is scheduled. The new crypto assets law should favor fast and cheap cross-border payments, perhaps through the use of blockchain. The idea is that this regulation will be in place in all EU countries within a period of about four years.
The virtual money issued by central banks, known as the CBDC (‘central bank digital currency’) will come to compete with cryptocurrencies or any other virtual currency that want to boost private companies. It will be the government alternative to cryptocurrencies like bitcoin. The creation of virtual currencies with the backing of legislation introduces elements of guarantee and can be declared money for legal use.
The new legal framework, released by Reuters, was in the virtual groups of the EBC on Monday and was alluded to by some of the speakers. Although among experts it is warned that the future virtual money of central banks does not necessarily have to use blockchain technology, fully proven by bitcoin.
“The new regulations will regulate all types of digital assets, not just cryptocurrencies”, warns Victoria Gago, co-founder of the EBC. The clarification of the legal framework should further boost activity around the blockchain world. The EBC fair is proof of that interest. In this year’s edition, a total of 1,500 people have registered, three times more than usual in previous face-to-face sessions. And the organization has mediated so far to hold 750 person-to-person meetings. The feeling is that the sector is bustling.
“Blockchain technology will have incredibly profound effects on business, government, and society. It is indisputable that in a few years we will see new public and private services based on Blockchain, supported by the European Blockchain Services Infrastructure (EBSI),” says Gago. “This online edition is an opportunity to multiply our impact. Never before has it been possible to have access to so much quality content from home”, says Daniel Salmerón, co-founder of the EBC.
The new European regulations should contribute to less use of cash payments, currently around 78% of the total, according to the latest available statistics. The current pandemic has also led to reduced cash payments. Brussels also wants to facilitate the exchange of data within the financial sector to encourage competition and a wider range of services, while maintaining the principle of “same risk, same rules, same regulation,” say community documents consulted by Reuters.
By 2024, the passport principle and a one-stop shop for licenses should be applied in all areas that have great potential for digital finance. Instant payment systems should become the “new normal” by the end of 2021 and already rolled out in 2024. Instant payments are suitable for many uses beyond traditional credit transfers, particularly for physical and online purchases, which are currently dominated by payment card schemes. The system designed in Europe should also be an alternative to American payment methods such as MasterCard and Visa.