Following the introduction of crypto regulations, European politicians are considering their next move in the race to attract Web 3 business – which could be the development of a tailor-made blockchain that respects privacy, according to Belgium’s digital minister in an interview with CoinDesk.
This new “Europeum” blockchain could potentially be used to keep records of property ownership, driving licenses, and more while adhering to the European Union’s high regulatory standards, said Mathieu Michel. He is in favor of steering away from the financial applications of distributed technology and instead focusing on public services and supply-chain management.
The EU has already taken a stand with its Markets in Crypto Assets (MiCA) regulation, which sets out governance and stability rules for crypto service providers. If this gets voted on in April, the bloc may become the first major governing body to have a clear crypto legislative framework. However, according to Michel, this is only the first step and Europe should consider creating a blockchain that follows the same foundational values that underpin its society.
He gave an example of how it could be used, such as digitizing administrative documents and educational diplomas to be recognized across the bloc. Michel believes that the EU’s high standards in data privacy – protected by the General Data Protection Regulation – can be incorporated into Web 3 – something he sees as a differentiator between the region and other jurisdictions. In his opinion, Ethereum’s traceability of transactions is excessive, as this could reveal sensitive information.
In order to make his country a Web 3 hub, Michel launched Blockchain for Belgium on February 20, which is intended to offer advice to policymakers and connect entrepreneurs in the sector. He is aware of the difficulties such as the capital raising gap compared to the US, as well as the complex federal structure in Belgium, which means some key policies don’t lie in his hands. Nonetheless, he cites a range of blockchain projects that have chosen to make the country their home and the highly skilled labor force as two of its biggest advantages.
The crypto community has criticized the Belgian tax system, which is why Michel is working on changes to clarify when and how virtual earnings should be taxed. He hopes this will make Belgium “the Switzerland of blockchain.” Nevertheless, during a parliamentary debate on March 8, Michael Freilich voiced his disappointment with the Blockchain for Belgium initiative, as he was expecting more immediate results.
Romanetto of the Smurfs Society, which produces NFTs of characters from the Belgian cartoon, is grateful for the support from Michel, as policymakers have a crucial role to play in the sector’s future. He commented that Europe has a strong hand to play in blockchain, but it needs to be regulated with care as too much could drive people away.
Quotes have been translated from French.
