The European Union (EU) has decided to invest $540,000 in the formation of the EU Blockchain Observatory to formulate efficient regulations and policies for companies and startups leading blockchain development.
In an official statement released on April 18, the EU stated that the budget would be used to fund the EU Blockchain Observatory for two years. During that period, EU officials, researchers, and regulators will be tasked to study blockchain technology, its technical specifications, impact to the global financial ecosystem and most importantly, its applicability to the finance industry.
“It will have the ambition to become an EU expertise hub to discuss forward-looking topics on blockchain and develop use cases of interest at EU level. The purpose will be to inform and assist the European Commission in understanding what role – if any – European public authorities should play to encourage the development and uptake of these technologies and to formulate related policy recommendations,” the EU announced.
Particularly, the EU Blockchain Observatory plans to focus on the features of blockchain technology that could be utilized to run smart contracts, base infrastructure for large-scale commercial operations, governance and validation mechanisms. Most importantly, throughout the two years, researchers and regulators at the EU Blockchain Observatory will provide regular updates regarding the development of regulatory frameworks around blockchain.
“To that end, the Observatory is expected to provide an up to date overview of relevant initiatives relying on Blockchain or Distributed Ledger Technologies around the world and follow-up closely the developments of this technology and the related challenges and opportunities for European industry, citizens, and governments,” the statement read.
Overall, governments and authorities in Europe are making efforts in attempting to regulate both the cryptocurrency and blockchain markets. Some European countries such as Malta are specifically focusing on bitcoin innovation and development. The island