While the impacts of the nascent tech are being felt within the European Union as Bitcoin (BTC), Ethereum (ETH), Stablecoins, and other primary expressions or applications of the tech are growing in adoption by the day.
The European Union (EU) is set to invest as much as $177 billion in revamping blockchain and the technology sector across the bloc as a way of easing some of the impacts of the coronavirus pandemic. The purpose of the fund will be to invest in emerging technologies such as data infrastructure, quantum computing, 5G, and blockchain technology amongst others.
The $177 billion is about 20% of the 750 billion euros ($887 billion) palliative funds agreed upon by EU leaders back in July last year. While the funds are notably set to be injected into the tech sectors that needed it, the details of the exact amount to be allocated were not unveiled. European Union President, Ursula von der Leyen highlighted the importance of investing in the region’s tech sector on Wednesday.
The advent of the coronavirus pandemic strained the tech sector, most of which are still battling the aftermath to date. One of the major aspects critically affected is the chip manufacture that is deployed in almost all electronics and cars. In order to ease the pressure off the bloc with respect to this chip scarcity, a part of the $177 billion funds has been earmarked for the manufacture of low-power processors, a feat which would notably prevent the recurrence of the chip scarcity menace.
EU Blockchain Drive
The EU has recognized the game-changing stance of blockchain technology across the board as it is considered to be one of the most innovative technologies in the 21st century. While the impacts of the nascent tech are being felt within the European Union as Bitcoin (BTC), Ethereum (ETH), stablecoins, and other primary expressions or applications of the tech are growing in adoption by the day.
In order not to stem the growth of this novel technology, EU officials are exploring avenues to invest and aid the development of the sector through governance. The EU tapped the Iota Foundation amongst other blockchain startups to help contribute to the early-stage design of the European Blockchain Services Infrastructure – an EU-wide distributed ledger technology project.
As a way to fully embrace distributed ledger technology and position itself at the core of what it offers, the European Central Bank (ECB) is building a Central Bank Digital Currency (CBDC) dubbed the Digital Euro. The Digital Euro is billed to leverage the power of blockchain technology which will help in designing a safe and cryptographically secured payment infrastructure that is targeted at easing the pressure on fiat Euro notes.
In all, the EU is pushing for a uniting regulatory framework rather than let member states decide what works best for them. While a recent survey has revealed that the majority of EU residents are against this region-wide regulatory framework, the option appears to be the primary approach officials believe is the best at present.