The European Union’s central bank recently commented on how the economic bloc could move to encourage the spread of new technologies like blockchain.
Before wider adoption within EU’s capital markets infrastructure takes hold, however, the ECB said that a number of conditions would need to be right. Namely: establishing the legal nature of digital currencies and the information stored on distributed ledgers, developing standards for interoperability, and creating a cohesive regulatory position across the bloc.
That said, the ECB advocated for an approach that doesn’t limit innovation – something it indicated should be applied to technologies beyond blockchain.
The bank noted:
The statements come weeks after the ECB reiterated that it believes the DLT market is too nascent for any kind of new regulatory approach. At the same time, it noted that the tech "is not mature enough and therefore cannot be used in the Eurosystem's market infrastructure" – or, to put it more simply, the ECB isn’t quite ready to use blockchain.
ECB image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.