European Parliament Approves Blockchain Resolution

Blockchain, News, Regulation | May 18, 2018 By:

The European Parliament has passed a blockchain resolution by the Industry, Research and Energy Committee, capturing solid support with 56 in favor and 3 opposed.

The blockchain resolution, titled “Distributed Ledger Technologies and Blockchains: Building Trust with Disintermediation,” was proposed by Eva Kaili, a member of the European Parliament, representing the Panhellenic Socialist Movement, and a former television news presenter. It recognizes that blockchain technology can improve significantly the key-sectors of the economy as well as the quality of public services, providing high level transactional experience to the consumers and citizens.

“DLT facilitates disintermediation, improves trust between the transacting parties, and allows peer-to-peer exchange of value that can empower citizens, disrupt legacy models, improve services, and reduce costs throughout value chains in a wide range of key-sectors,” the resolution states.

The resolution implies that blockchain will have a dramatically positive impact on many public services in areas such as education, energy, environment healthcare, intellectual property, law enforcement, tax collection and vital records, among others.

The resolution welcomes the potential of blockchain to disrupt existing value chains and transform business models and thus promote innovation-driven growth. It stresses that SMEs can benefit from disintermediation by reducing transaction costs, intermediation costs and red-tape.

The blockchain resolution also calls on the commission to propose a regulatory framework for initial coin offerings (ICO).

“Initial coin offerings have a strong potential in funding innovation and accelerate technology transfer,” the document states. “ICOs are a distinct asset class with strong potential.”

During the deliberations, Kaili said the main goal of the resolution was to highlight that blockchain were not confined to cryptocurrency alone. She suggested that the use of DLTs should be explored in several crucial sectors. She also explained to the parliament that it was not the technology that needed to be regulated, but the uses per sector.