EU plans to launch blockchain public services project, but still has no change of attitude towards Bitcoin

The European Commission (EC) said it is closely monitoring the development of blockchain and distributed ledger technology (DLT), saying the technology’s unlimited potential for application has proven to be “promising and challenging”.

In a speech given on February 7, European Commission Vice President Andrus Ansip explained to members of the European Parliament (EP) that the Commission’s support for blockchain and DLT “will be fully upgraded in the coming months.”

Last year, the European Parliament authorized the establishment of a special working group to further study DLT. The initiator of this working group, Jakob von Weizsäcker, said that its purpose is to closely monitor the development of DLT and establish specific regulatory rules when necessary.

Ansip said the European Commission is considering adopting a "decentralized innovation ecosystem" to launch pilot projects and promote communication and interaction between "consumers, producers, companies and regulators."

He said:

The Commission has already started supporting DLT projects (including DECODE, D-Cent, MyHealth MyData, etc.). We will continue to support more projects in the coming months. We plan to launch a research project to explore the use of DLT in reshaping public services, and also to clear the way for the EU to participate in DLT activities in the future.

He concluded that in the future the Commission and the European Parliament will work closely together to hold a series of seminars to focus on the development and application of blockchain.

The EU and blockchain

Ansip’s speech further illustrates the European Commission’s desire to promote European fintech and blockchain companies to world-leading positions.

Earlier this month, the European Securities and Markets Authority (ESMA) released its latest report (download the full text of the Coin Library), pointing out that blockchain technology is still in its “early stages” and the time is not yet ripe for regulation.

However, institutions such as the UK Financial Conduct Authority (FCA) that can establish regulatory rules for companies in a timely manner can help fintech companies develop in difficult situations.

Strictly manage Bitcoin

However, when it comes to Bitcoin, the European Commission’s stance is tougher.

The European Parliament released a work report in January this year, stating that its main task in 2017 is to strictly regulate digital currencies such as Bitcoin in order to combat money laundering.

The European Parliament’s decision is understandable given all the negative press surrounding Bitcoin in the past, but it can also be seen as a further development for Bitcoin, as the EU is already considering reversing the scope of Bitcoin’s use.