European Commission Proposes Blockchain Pilot to Examine Regulatory Issues

Unfinished European Union Flag puzzle

According to a draft communication from the European Commission addressed to parties including the European Parliament and the European Central Bank, the executive branch of the European Union wants to create a Blockchain proof-of-concept focused on regulation.

The pilot would center on improving knowledge and awareness of the technology among the EU’s regulatory community.

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.

From the report.

The Commission has launched an internal FinTech Task Force which involves all relevant services working on financial regulation, technology, data and competition to ensure that our assessment reflects the multi-disciplinary approach that Fintech developments ask for. 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.

Alongside this Action Plan, the Commission is launching a public consultation to receive input from stakeholders to further develop the Commission’s policy approach towards technological innovation in financial services. The consultation is structured along four broad policy objectives that reflect the main opportunities and challenges related to Fintech:

(1) Fostering access to financial services for consumers and businesses;
(2) Bringing down operational costs and increasing efficiency for the industry;
(3) Making the single market more competitive by lowering barriers to entry; and
(4) Balancing greater data sharing and transparency with privacy needs.