Ahead of EU Elections, Crypto Industry Pushes Blockchain Merits as Policy Focus Shifts to AI

The European Union has implemented the first extensive regulations for cryptocurrencies alongside stringent anti-money laundering measures. However, with potential revisions to the MiCA (Markets in Crypto Assets) regulation on the horizon and uncertainty surrounding the political futures of its key architects, Europe’s crypto industry is preparing for possible modifications.

As a dedicated researcher focusing on technological advancements within the European Union, I’ve recently come across an exciting development. In the early part of this year, four prominent EU industry groups decided to collaborate and author a manifesto. Their collective intent: to champion the adoption of blockchain technology throughout the EU. With the global race towards a digital economy gaining momentum, they recognized the importance of staying competitive and innovative in this arena.

According to the groups, releasing their manifesto at this pivotal moment in European politics, amidst the approaching elections and anticipated shifts, is essential. They advocate for the continuation of efforts related to blockchain technology.

“We acknowledge the significant worth of innovations such as artificial intelligence, virtual reality, and robotics. However, we firmly assert that blockchain technology will function as the foundation of trust for the integration of these advancements. By serving as a robust base, blockchain will enable these technologies to collaborate and establish the architecture of the next-generation digital economy.”

Young blood

The organizations are optimistic that the upcoming parliament, composed of presumably newer members, will be more receptive to their initiatives regarding digitization compared to the previous parliament.

As a blockchain and crypto analyst, I’ve discovered an intriguing finding: In the realm of crypto and blockchain policy, the political parties might hold less influence than the age of individual lawmakers. This observation stems from Robert Kopitsch’s perspective as secretary general of Blockchain for Europe, one of the four industry associations involved in drafting the manifesto.

As a crypto investor myself, I can tell you that having a wallet filled with digital assets makes it easier for me to embrace the notion that cryptocurrencies will play a significant role in the economy of tomorrow. Since I personally own and use these assets, I have firsthand experience with their functionality and underlying concepts.

Marina Markezic, a co-founder of the European Crypto Initiative (EUCI) and a contributor to the manifesto, believes that newer politicians tend to be more technologically adept.

Markezic added that discussing blockchain technology with people would be more straightforward and clear if expressed in simpler terms.

As a crypto investor, I’m always keeping an eye on market trends and news that could impact my investments. However, it’s important to note that things might temporarily cool down in the crypto space, as per Benedikt Faupel from Bitkom, the German digital industry association. The uncertainty surrounding upcoming elections could be a contributing factor to this potential slowdown.

MiCA architect up for re-election

The European Parliament’s crypto policy had limited backing from the start, with “approximately three to four individuals” taking the lead on the issue, according to Markezic.

Experts like Kopitsch and Markezic concur that Greek politician Eva Kaili, who served as former EP Vice President, significantly propelled the crypto sector in the government. Her expulsion from Parliament due to a high-profile corruption scandal was perceived as a setback for policy initiatives. However, German lawmaker Stefan Berger played a pivotal role in ensuring the passage of MiCA (Markets in Crypto Assets) regulation despite this hurdle.

Berger, serving as the representative and primary negotiator for the package, played a crucial role in preventing the European Parliament’s Green faction from enforcing a restriction on the energy-consuming proof-of-work consensus mechanism used by Bitcoin, thereby preserving its legality within the union.

“He did so much,” said Markezic, referring to Berger’s work on MiCA.

Berger currently holds the role of rapporteur for the EU’s proposed digital euro legislations. However, he is also facing re-election in June. As stated by Jonas Gross, the Digital Euro Association’s head, predicting the results of an election on such a scale is challenging, and it’s impracticable to speculate about particular officials who might not be returning this year.

“Stefan Berger is leading the European Parliament in a progressive and receptive way regarding crypto assets, stablecoins, and the digital euro. It’s ideal to have a parliament with a comparable innovative mindset to advance these digital currency-related issues for the betterment of the EU.”

Mairead McGuinness, another key figure in the design of MiCA and presently holding the commissioner role for financial stability, has expressed uncertainty about her future in this capacity beyond the 2024 parliamentary elections. Despite her intention not to seek re-election as an MEP, she remains open to serving another term as Commissioner, but ultimately the EU’s higher authorities will make the final call.

Digital euro

As a researcher delving into the world of cryptocurrencies, I’ve observed that the European Union’s initiative towards creating a central bank digital currency (CBDC), known as the digital euro, has been gaining significant attention. This development, following the implementation of MiCA regulations, has sparked debates and even fueled speculation among some observers. Some politicians have raised alarms, expressing concerns that a digital euro could potentially grant EU governments excessive power and unrestricted access to private information.

As an analyst, I’ve come across Anne-Sophie Gógl’s perspective that certain right-wing political groups in Germany are attempting to manipulate public sentiment towards the European Union by leveraging proposals for a digital euro.

In a written communique, Gógl expressed concerns over the use of terms like “control” and “surveillance” by certain individuals. He additionally highlighted accusations that the digital euro could marginalize underrepresented groups. Gógl warned that post-election European Parliament (EP) composition might result in more right-wing populist members, potentially leading to misuse of the digital euro topic for disseminating false information.

Far-right parties are experiencing a surge in popularity according to recent polls, yet it’s uncertain if their gains will be sufficient to significantly influence the outcome against pro-EU sentiments in the upcoming election.

Should these parties secure a significant number of new seats, it could considerably delay the policy-making procedure for a digital euro, according to Gógl’s assessment.

As a seasoned analyst, I’ve observed that the call for embracing blockchain technology over hyped assets isn’t a novel proposition within the industry. When bear markets hit hard, resulting in the fall of crypto giants, the response was swift. Instead of focusing on speculative investments, industry players shifted their attention towards showcasing blockchain applications in conventional finance and other sectors at forums such as the World Economic Forum.

As a analyst, I’ve noticed that people are shifting their focus away from the financial implications of blockchain technology. Instead, we should emphasize the potential of this industry in areas like Regenerative Finance (ReFi), supply chains, and data handling. During a recent interview with CoinDesk, Blaj made this very point.

ReFi, or Regenerative Finance, represents a novel approach in the crypto sphere where initiatives embrace sustainability investments as a means to mitigate market-induced issues.

Establishing blockchain technology as a essential component of Europe’s digital transformation could be crucial for the industry’s continued success in the region.

As a researcher looking back at the formation of the current government, I recall an exciting buzz surrounding blockchain technology. Europe emerged as a pioneer in this field, swiftly taking action with policies and initiatives to capitalize on its potential.

The elections will take place from June 6 to 9.