Posted in: Forex

Cryptocurrency Adoption: EU to Undertake Blockchain Tech

Due to the changing financial landscape in recent times, the European Union has been looking forward to integrating cryptocurrencies and blockchain technology processes in its processes as well within the next few years. Reuters recently reported that the European Union is fast-tracking the integration of blockchain technology and introducing regulations that would encourage the use of cryptocurrencies. The move by the European Union is primarily due to the fact that it would help ease cross-border payments and transactions due to the convenience, efficiency, and security afforded by blockchain technology.

As per the EU document tracked by Reuters, the European Union is looking to build a comprehensive framework regarding the assimilation of DLT or distributed ledger technology and blockchain technology in its financial landscape. The framework would also address the security concerns and risks associated with the use of such technology. The rationale behind the EU’s interest to encourage blockchain technology is primarily the need for cashless systems in today’s date. As of now, over 80 percent of the payments in the European Union is done through cash. It has become a hygiene issue, especially due to the ongoing global pandemic.

There is an urgent need for instant and secure cashless payments systems the world over, and the strategy adopted by the European Union clearly highlights it. Going by the EU’s current planning, the cashless systems should be in place by the end of next year. The European Union hopes to replace cash use with digital payment systems by developing and integrating relevant technologies and creating awareness among the end-users. The ongoing pandemic has defined the “new normal” for everyone in every aspect of life, and with regards to payments, digital and cashless payments are the new normal.

Even though the European Union is yet to confirm the adoption of any particular cryptocurrency, the EU’s central banks might come with one go-to currency. It is plausible that the European Union and its Central Bank decides to adopt stablecoin or the CBDC (central bank digital currency) for payments. There are many countries within the European Union that are testing the possibilities of launching the central bank digital currency as the primary go-to cryptocurrency for digital payments. Some of these countries include France, Sweden, and Switzerland.

Developing and launching a stablecoin for an entire continent seems like a mammoth undertaking. Still, if it is only specific to the European Union, it can work well with the existing fiat currency. The fear of cryptocurrency taking over completely is unfounded when it works in conjunction with the fiat currency. In any case, it is good news for the crypto market as the European Union’s adoption will build trust and add confidence among the consumers worldwide, not to mention that it brings awareness about the need for cryptocurrencies globally.

The European Union is well-known for developing, welcoming, and encouraging new technologies, and blockchain technology are no different. It enjoys a wide-scale academic as well as political support in the European Union, which is evident from the fact that its executive body launched European Blockchain Partnership in 2018. It functions at a political level across all the countries in the EU. It is working towards the mass adoption of blockchain technology to benefit its citizens, societies, administration, and economies.

Many of the larger industries in the European Union with a high CAGR of compound annual growth rates are moving towards blockchain solutions and blockchain technology adoption. The early adoption of new technologies and welcoming digital innovation has always worked to the EU’s advantage. In the context of blockchain technology too, it seems to be no different, and rightly so.  

Posted in: Forex

New Swiss Laws Provide Solid Ground For Blockchain And Crypto

Swiss parliamentarians approved a new financial and corporate regulation changes package that acknowledges the cryptocurrency and blockchain industries.

According to a Swiss Information Article, the Government changed several regulations, from the bankruptcy to the exchange in shares.

The new regulation determines the legalities of digital stock transactions and the legal mechanism to regain intangible properties from distressed firms. It also specifies the regulatory criteria for conducting cryptocurrency trade so that the possibility of money laundering of cryptocurrency is mitigated.

This amendment comes after adopting the “Blockchain Act” by members of the Parliament in the summer of 2020 without any objection.

The latest version of current laws will presumably come into practice at the beginning of next year. This is supposed to offer Switzerland a huge boost to the blockchain and cryptocurrency industry and digital finance.

Today, Switzerland has over 900 blockchain and cryptocurrency firms, including Facebook’s Libra, with over 4,700 workers.

The European Nation has played an important role in the banking and finance environment, renowned mainly for its stunning alpine scenery and luxury products. It was also swiftly accepted blockchain and crypto-currency, after which time it assisted the experimentation of both established and emerging firms.

Also, public and private industries in Switzerland are working with this technology alongside the state, seeking to drive for blockchain and cryptocurrency progress.

In Switzerland, private crypto-monetary banks have appeared. After the Swiss financial market supervisory authority issued Swiss banking licenses, Sygnum and Seba Crypto AG became the country’s first cryptocurrency banks in 2019.

According to a Swiss Data report, after the legislation had been passed in an unfinished way by the House of Representatives, the Blockchain Act in Switzerland was formally reformed by the Senate.

As detailed, the reformed Blockchain Act has provided crucial updates from bankruptcy to the exchange of shares. In compliance with the new laws, an established legal framework has been developed for exchanging digital shares only. The reformed legislation further aims to outline the legal procedures for recovery from distressed corporations of intangible properties. The legislation should be enforced in the first quarter of 2021, depending on indications.

The county currently houses some 900 blockchain businesses with an approximate overall workforce of around 4.700 as gleaned in the Swiss Information survey. Switzerland is recognized as the fast-growing center for the blockchain market in the world. These statistics will improve if the current bill is introduced in full.

The laws currently being reformed will set a remarkable precedent for stronger and equitable blockchain legislation from the Swiss Federal Council. The topic of its influence is essential to many as the wishes have been heard, and the Blockchain Act has been reformed.

The latest regulation is supposed to shed new light on technology and its related technologies by the extremely blockchain and crypto wary Swiss banking industry. Failure to help blockchain and cryptocurrency will make current banks lose customers for the two blockchain companies Sygnum and Seba Crypto AG, Switzerland’s highest banking authority, the financial sector surveillance authority.