Bitcoin, Blockchain and European Union Aftermath
Bitcoin (virtual currency brand) and blockchain (virtual currency technology) seem to have made their mark on the European Union. There have been talks, within the European Parliamentary Committee, of amending EU payment laws in the light of the innovations provided by Bitcoin (cryptocurrency) and related technologies such as Blockchain. This has been discussed in detail, talking about both risks and growth opportunities of digital transactions, in their recently released report on virtual currencies and the technology behind blockchain.
Its taken seven years for Bitcoin to make this impact globally, for financial policy makers to start taking it seriously. Bitcoin was launched as digital money in 2009 and aimed at the ease of peer to peer transactions. A transfer of funds between two people living in different countries can be conducted within one hour, without any involvement of a third party intermediary. This has got years of opposition from the banking industry that never wanted Bitcoin to become popular, however with the coming of Blockchain technology, attitudes have changed a bit. In that perspective, the acceptance from EU in such a form is more than a welcome move for digital technologies.
The EU report urges to invest intellectual research in the area of digital currencies; understand and gain perspective on how future policies of payment laws and legalities can be interwoven to best advantage. For this, EU report urges to even generate an exhaustive list of VCs in this regard.The report suggests editing the laws pertaining Directives of Payment Accounts, Payment Services and Electronic Money Directive. The aim is to lower banking transaction costs working with an electronic wallet.
Finally, the EU report also proposed a formation of a specialist team, comprising of actually capable virtual money and blockchain endeavors and controllers, drove by the European Commission. The suggestion was beforehand made in February this year.
Some experts in the U.S. have seriously raised doubts over Bitcoin survival. However in the light of such event, Bitcoin’s popularity in Europe can pave its way for the world and eventually help it gain acceptance from traditional banking and finance institutions throughout the world.