European blockchain body tells EU to prepare for AI-Web3 merger and emergence of CBDCs

The European Blockchain Observatory and Forum (EUBOF) has alerted the European Union (EU) to prepare to manage the next era of decentralized artificial intelligence networks. In a report addressed to the EU, EUBOF said that the fusion of blockchain and artificial intelligence is emerging as a trend in the technology sector that is being rapidly explored, especially in the finance and healthcare sectors. The report listed property management and supply chains as among the sectors that will benefit from blockchain-related applications in the near future.

EUBOF is an initiative launched by the European Commission in 2020 to facilitate research and development around blockchain technology. After the EU released its MiCA Regulation To govern the volatile cryptocurrency sector last year, the EUBOF submitted its report to the EU with the aim of pushing the body to start discussing measures to best utilize blockchain use cases in decentralized finance (DeFi)energy sector, metaverse, smart contractsautomotive sector and decentralized social media.

“MiCA has played a critical role in establishing a harmonized regulatory standard for crypto-assets, issuers and service providers, focusing on consumer protection, transparency and market integrity. As CBDCs, the convergence of blockchain with artificial intelligence, and other emerging trends continue to develop, they will spur more innovation and create new opportunities across various industries. relationship noticed.

EUBOF predicted this because blockchain networks offering interoperability, sustainability and energy-efficient technology solutions – will continue to see adoption in the coming years. The fusion of AI and blockchain will improve the functionality of smart contracts, which could contribute to the growing ecosystem of decentralized ecosystem.

From CBDC, the report predicts that various forms of CBDC will coexist with traditional money in the near future. CBDCs or central bank digital currencies are the virtual representation of fiat currencies such as dollar, pound and rupee. CBDCs are supported on blockchain, where spending history is permanently recorded ensuring greater transparency. Issued by central banks, CBDCs would serve as an online payments tool but with greater transaction speed, a brick-and-mortar history, and faster transfer of funds internationally.

“It [CBDC] addresses regulatory, technological and end-user experience considerations, along with potential implications for financial stability and the banking sector,” the report notes.

EUBOF concluded its findings at a time when both regulatory and ecosystem maturity related to blockchain are advancing, driven by positive externalities with smaller, more agile countries initially leading the way, followed by larger nations capitalizing on developed regulations.

The EU has not yet commented on the findings of this report. After approving the MiCA regulation for the cryptocurrency sector in 2023, the EU approved the Artificial Intelligence (AI) Law on March 13, 2024. favorable context for the growth of AI in Europe. The law should be fully applicable after 24 months.

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