Featured Product

    EC Report Explores Application and Challenges of Blockchain Technology

    October 08, 2019

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies. The report "Blockchain now and tomorrow" offers an in-depth and practical understanding of blockchain and how the technology can be used in various sectors in the future. The report helps policymakers and industry understand not only the latest trends in blockchain technology but how trust can be built between different stakeholders.

    The report provides multidimensional insights into the state of blockchain technology by identifying ongoing and upcoming transformations in a range of sectors and setting out an anticipatory approach for further exploration. Moving beyond the hype and debunking some of its controversies, the report is intended to offer both an in-depth and practical understanding of blockchain and its possible applications. The report explains that blockchain technology is still at the embryonic stage and facing many challenges, such as performance and scalability, energy consumption, data privacy, integration with legacy infrastructures, or interoperability between different blockchains. Still, based on a limited set of proven use cases, blockchain often entails additional risks and barriers for firms, businesses, and organizations piloting it or interested in its deployment.

    The report also highlights that policymakers and regulators need to progress in assessing whether existing policies and laws are fit for purpose or if new frameworks will be required. Pressing discussions include, for instance, the legal classification of tokens and coins, validity of smart contracts, applicable jurisdictions, consumer and investor protection, enforcement of anti-money laundering requirements, and data protection and privacy safeguards. Furthermore, the development of blockchain should be connected to existing digitization initiatives and programs to avoid overlaps and to maximize impact. Blockchains will be complementary or will work together with other key digital technologies, such as artificial intelligence, the "internet of things," data analytics, cloud computing, robotics, and additive manufacturing. As an emerging technology, blockchain requires the multiplication of use cases to test its added value in specific applications and sectors. 

    Further support and funding for pilots and experimentation spaces must bring together a range of stakeholders from universities, research centers, industry, small and medium enterprises, and start-ups. Blockchain is the technology behind bitcoin and other cryptocurrencies, but it has the potential to transform the ways to exchange a much wider range of assets. It could enable the secure transfer of money, contracts, land titles, data, services and other assets digitally, with few or no intermediaries. In February 2018, EC had launched the EU Blockchain Observatory and Forum with the support of the European Parliament to highlight key developments of the blockchain technology, promote European actors, and reinforce European engagement with multiple stakeholders involved in blockchain activities.

     

    Related Links

    Keywords: International, Europe, EU, Banking, Securities, Insurance, Fintech, Regtech, Blockchain, Distributed Ledger Technology, EC

    Related Articles
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    FSI Examines Use of Red Team Testing to Enhance Cyber Resilience

    The Financial Stability Institute (FSI) of BIS published a paper that examines the contribution of red team testing frameworks toward enhancing cyber resilience.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4164