European Commission Proposes Blockchain RegTech Pilot

The executive branch of the European Union may soon embark on a blockchain test that trials the technology's regulatory applications.

AccessTimeIconMar 27, 2017 at 2:30 p.m. UTC
Updated Sep 11, 2021 at 1:11 p.m. UTC
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The executive branch of the European Union wants to create a blockchain proof-of-concept focused on regulation.

According to a draft communication from the European Commission addressed to parties including the European Parliament and the European Central Bank, the pilot would center on improving knowledge and awareness of the technology among the EU's regulatory community.

In the draft communication, dated 23rd March, the Commission said it is launching a public consultation effort on financial technology more broadly, one that is seeking input on how it can improve market efficiency and accessibility.

It's in this light, according to the draft, that the pilot is being proposed.

The Commission writes:

"This work will also benefit from specific funding from the European Parliament for a pilot project aimed at reinforcing the capacity and technical expertise of national regulators with regard to distributed ledger technology."

That the commission would advance pilot projects is perhaps unsurprising. In mid-February, the Commission said that it was already undertaking such trials, including one that addresses public-sector applications.

Such work coincides with examinations that have considered extending limits on cash purchases to digital currencies, as well as proposals to more tightly regulate certain business applications of the technology.

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