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European Commission Report Advises EU to Brace for Blockchain and AI Integration
- The EUBOF report emphasises the integration of blockchain with AI, enhancing both technologies for innovative applications in sectors like healthcare and finance.
- It recognises the potential of decentralised AI networks supported by blockchain to mitigate monopoly risks and improve the efficiency of smart contracts.
- The report also marks ongoing growth in decentralised finance and urges EU leadership in blockchain through strategic engagement and regulation like MiCA.
An initiative called the EU Blockchain Observatory and Forum (EUBOF) has just advised the European Commission on the emerging trends in the blockchain sector. One of the highlights is the convergence of blockchain technology with artificial intelligence (AI).
The report said that the “integration can enhance the capabilities of both technologies, leading to innovative applications and solutions”.
Data security and privacy, decentralised AI, smart contracts and automation are seen as the key areas. The report said healthcare and finance are sectors where security and privacy are key, where blockchain can provide a “secure and transparent framework for AI data”.
Decentralised AI networks can be supported by blockchain, which reduces the risk of monopolies. On the smart contract side, AI can play a role in making complex contract conditions more efficient.
The report also acknowledges decentralised finance (DeFi) as an area that sees ongoing growth and adoption.
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Report Recommends EU Leadership in Blockchain Sector
The EUBOF’s flagship report, first released in 2020, provides a comprehensive overview of the European blockchain ecosystem, including the adoption and regulatory landscape in the 27 EU member states, plus the UK and Switzerland.
The report identifies Cyprus, Estonia, Malta, and Switzerland as leaders in blockchain maturity due to their educational efforts, early regulatory adoption, comprehensive legal frameworks, and strong venture capital presence respectively.
The EUBOF report recommends enhancing blockchain innovation and adoption in the EU to assert “Europe’s vision and ambition globally”. EUBOF specifically highlights MiCA (Markets in Crypto Assets) as a milestone in crypto regulation:
MiCA has been pivotal in setting a harmonized regulatory standard for crypto-assets, issuers, and service providers, focusing on consumer protection, transparency, and market integrity. This legislation represents a significant step toward legal clarity and operational safety in digital finance.
EUBOF Perhaps the European wish for leadership in the field will prompt the current US administration to become a little more proactive in the area. After all, Donald Trump has recently shown an interest in crypto and said he fully backs it.
Given the increasing popularity of crypto and the fact that tens of millions of Americans hold it, the Biden administration would be well advised to rein in Gary Gensler and Elizabeth Warren, who are among the strongest crypto opponents in the States.
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Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
