After regulating cryptocurrencies, European politicians are considering the next step in the race to attract business to Web 3 – and it could be a tailored blockchain that respects privacy, Belgium’s digital minister told the CoinDesk in an exclusive interview.
A new “Europeum” blockchain could be the vehicle to record property ownership, driver’s licenses or professional qualifications while remaining highly regulated by the European Union, Mathieu Michel said.
After a series of scams and scandals, Michel favors moving away from purely financial applications of distributed technology, to 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.
When voting in April, the bloc will become the first major jurisdiction in the world to have a clear crypto framework – but the story doesn’t have to end there if Europe wants to lead the world in blockchain, says Michel, a French-speaking centrist member. party MR.
MiCA “goes in the right direction, but it’s only a first step,” said Michel, saying that the block should consider “a blockchain network built around fundamental values” which underpins European society.
“Imagine that you have Europeum – the blockchain with a whole series of conditions for the protection of private life and so on, which is very transparent,” he said, highlighting a word that appears to be a game in the name of the Ethereum network. Instead of the political mining 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 identify the entire block.
For Michel, Europe’s high standards in areas such as data privacy – protected 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, they should be seen in Web 3.
“Ethereum is traceable – I find it crazy,” he said of the feature that allows users to see full transaction details for a given wallet, a level of transparency that he sees as it’s too much. “If you go to eat with your mistress in a restaurant, do you want to see it on the blockchain?”
Michel, convinced that Web 3 can help companies organize their supply chains and governments offer public services, is on a mission to make his country a hub for Web 3 activity. On February 20 he launched Blockchain for Belgium, to provide advice to policymakers, and provide networking opportunities for entrepreneurs in the sector.
Michel is candid about the challenges. Europe is not as easy a place to raise capital as the US, which makes it less attractive for any type of startup. The situation is even more difficult because of the complex federal structure of Belgium: the main policies are not in the hands of Michel, but of the regional governments, or the finance minister, Christian Democrat Vincent van Peteghem – someone who, says Michel, doesn’t always share. his appreciation or optimism about technology.
However, Michel mentioned a variety of blockchain projects – Datavillage, Solid and Settlemint – that chose to make the country their home, and mentioned a highly skilled workforce as the head of the forces. this.
If Michel is hoping that a community of blockchain enthusiasts can help overcome policymaker skepticism, it’s clear it won’t be easy.
In a parliamentary debate on March 8, held after the interview, the lawmaker Michael Freilich said that he was “disappointed” with the Blockchain initiative for Belgium, because, instead of acting quickly, the government was looking for recommendations that can only come to the end of its order. .
“I expected more … the results will once again be nothing,” said Freilich, who is from the right-wing New Flemish Alliance, which is the largest group in the Federal Chamber but is not one of the seven parties that formed 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, and leaves investment income tax in an unhelpful legal gray area. place Michel suggested that he was listening; he said he is working on changes to clarify when and how virtual profits should be taxed, something he says will help make Belgium “the Switzerland of 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, support from Michel is welcome – especially because policymakers play an important role in determining the future of the ecosystem.
“Europe has a strong hand in the blockchain game,” Romanetto told CoinDesk. “There has to be regulation, but it won’t stop … 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 is not enough,” Romanetto said.
The quotations are translated from French.
