After landmark crypto law, European politicians are considering building their own blockchain
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After regulating cryptocurrencies, European policymakers are considering the next step in the race to attract Web 3 business — and it could be a tailor-made blockchain that respects privacy, Belgium’s digital minister told CoinDesk in an exclusive interview.
A new “Europeum” blockchain could be the vehicle to register property ownership, driving licenses or professional qualifications while adhering to the EU’s high regulatory norms, said Mathieu Michel.
After a series of frauds and scandals, Michel advocates moving away from purely economic applications of distributed technology, towards public services and supply chain management.
The EU has already drawn a line in the sand with its Markets in Crypto Assets Regulation (MiCA), which sets governance and stability rules for cryptocurrency service providers.
If voted in April, the bloc could become the world’s first major jurisdiction with a clear crypto framework – but the story should not end there if Europe wants to lead the world in blockchain, said Michel, a member of the French-speaking centrist. party MR.
MiCA “goes in the right direction, but it’s only a first step,” Michel said, saying the bloc should consider “a blockchain network built around the fundamental values” that underpin European society.
“Imagine you have Europeum – the blockchain that contains a whole series of conditions to protect privacy and so on that are very transparent,” he said, conjuring up a word that appears as a play on the name of the Ethereum network. Rather than the political minefield of cryptocurrency, he said, it could focus on areas that are less sensitive or prone to abuse — such as digitizing administrative documents or educational diplomas to be recognized across the bloc.
Read more: MiCA at the door: How European crypto firms are getting ready for sweeping legislation
For Michel, high European standards in areas such as privacy – safeguarded by the EU’s General Data Protection Regulation – are an asset the bloc can use to carve out its own digital niche. Now he believes that they may have to be reflected in Web 3.
“Ethereum is trackable – I think it’s crazy,” he said of the feature that allows users to see full transaction details for a given wallet, a level of transparency he sees as excessive. “If you go to eat with your mistress in a restaurant, do you want it to appear on the blockchain?”
Convinced that Web 3 can help businesses organize their supply chains and governments provide public services, Michel is on a mission to make his country a hub of Web 3 activity. On February 20, he launched Blockchain for Belgium, to offer advice to decision makers, and provide networking opportunities for entrepreneurs in the sector.
Michel is honest about the challenges. Europe is not as easy a place to raise capital as the US, which makes it less attractive for any kind of start-up. The situation is still more difficult given Belgium’s complex federal structure: key policy lies not in Michel’s hands, but in the hands of regional authorities, or the finance minister, the Christian Democrat Vincent van Peteghem – people who, Michel says, do not always share his appreciation or optimism about the technology.
Michel nevertheless cites a number of blockchain projects – Datavillage, Solid and Settlemint – that chose to make the country their home, and cites a highly skilled workforce as chief among their strengths.
If Michel hopes a community of blockchain enthusiasts can help overcome lawmakers’ skepticism, it’s clearly not going to be easy.
In a parliamentary debate on March 8, held after the interview, lawmaker Michael Freilich said he was “disappointed” with the Blockchain for Belgium initiative, because instead of acting immediately, the government seeks recommendations that may not come until the end of the mandate. .
“I had expected more … the results will once again be nothing,” said Freilich, who is from the right-wing New Flemish Alliance, which is the largest grouping in the Bundeschammer but is not one of the seven parties that make up the governing coalition.
High among the complaints of the crypto community is the Belgian tax system – which imposes the highest labor taxes in the developed world, leaving the taxation of investment income in an unhelpful legal gray area. Michel suggests he has been listening; he says he is working on changes to clarify when and how virtual income should be taxed, which he says could help make Belgium the “Switzerland of the blockchain.”
For blockchain entrepreneurs like Julien Romanetto of the Smurfs Society, a company that produces non-fungible tokens (NFTs) of characters from the Belgian cartoon, Michel’s support is welcome – not least because politicians have such a crucial role to play in determine the ecosystem’s future.
“Europe has a strong hand to play in blockchain,” Romanetto told CoinDesk. “There needs to be regulation, but it shouldn’t be restrictive … too much regulation and people will go to Dubai.”
“It’s great that the government is doing something, but just setting up a WhatsApp group won’t be enough,” Romanetto said.
Quotations are translated from French.
Read more: Brussels’ fledgling crypto industry is flexing its muscles
