The GBA has been requested to provide feedback and comments regarding the EU Resolution on DLT and Blockchain Technology Resolution. Members of the GBA Legal & Legislative Working Group are collecting that feedback now and will be publishing a formal response similar to the AMF (French Regulator) Discussion Paper on ICO Regulation.
The resolution recognizes that blockchain and other DLT technologies can improve significantly the key-sectors of the economy as well as the quality of public services, providing high level transactional experience to the consumers and citizens. It also recognizes that this technology will disrupt legacy models by introducing an IT-based paradigm of social value that promotes self-sovereignty, trust and transparency. It implies that this technology will have a dramatically positive impact on many public services in areas such as:
- Asset Management (land titles, vehicle records)
- Certifications, Licencing & Permitting
- Intellectual Property
- Law Enforcement (Financial Monitoring)
- Supply Chains
- Tax Collection
- Vital Records (e.g. birth-, marriage-certificates)
The resolution goes on to discuss the infrastructure that will be needed to support the maturing of this technology and, addresses topics including the establishing DLT ecosystems that include considerations of topics including:
- Self-sovereignty, Identity and Trust
- Smart Contract Standards & Frameworks
- Interoperability, Standardization and Scalability
- Infrastructure Security
It also underscores that Initial Coin Offerings (ICOs) have a strong potential in funding innovation and accelerate technology transfer. ICOs are a distinct asset class with strong potential and it calls on the Commission to propose a framework for ICOs.
However, it does recognizes that this is still an evolving technology and it is therefore necessary to create a framework of legal certainty around the applications that have originated from it. Regulating DLT is not politically optimal as the approach of being technology-neutral in regulation is favoured. It is important to develop innovation-friendly regulation based on the innovation principle.
In other words, it stresses that the European Union should not regulate DLT per se but should try to bring down existing barriers to implementing blockchains. It should invest in innovation and promote this technology. The resolution recommends that the Commission create a use case based strategic plan for building DLT-based infrastructure within and amongst the EU Institutions that can be used by the Member States as a model for their public sector modernization. It stresses that a European public-sector blockchain could be the heart of a trusted transactional ecosystem, compliant with the applicable EU Law, consisting of nodes in the 28 Member States, the Commission and the Parliament, aiming to enable cross-border transactions between Member States, regulatory reporting, and data transactions between citizens and the EU Institutions utilising smart contracts. It emphasizes that the Union has an excellent opportunity to become the global leader in the field of DLT and to be a credible actor in shaping its development and markets globally in collaboration with our international partners.
Any GBA Government or Professional Member wishing to participate in our formal review and comment of this historic resolution should join the GBA Legal & Legislative Working Group. Note: GBA Membership is free for government or military employees. Go to our Membership Page for more information.