European Blockchain Body Urges EU Prep for AI & CBDC Era

The European Blockchain Observatory and Forum (EUBOF) has alerted the European Union (EU) to be prepared for the upcoming era of decentralized AI networks. The tech industry is rapidly exploring the merging of blockchain and AI, especially in finance and healthcare sectors. The report also highlights property management and supply chains as sectors that will benefit from blockchain applications in the near future.

Established by the European Commission in 2020, EUBOF aims to promote research and development around blockchain technology. Following the release of MiCA regulations by the EU to govern the crypto sector last year, EUBOF has submitted a report urging the EU to discuss steps to leverage blockchain’s use cases in various sectors such as decentralized finance (DeFi), energy, metaverse, smart contracts, automotive, and decentralized social media.

The report noted that MiCA has been crucial in setting regulatory standards for crypto-assets, issuers, and service providers, focusing on consumer protection, transparency, and market integrity. As blockchain converges with AI and other trends, it is expected to drive innovation and create opportunities across different sectors.

EUBOF predicts that blockchain networks, offering interoperability, sustainability, and energy-efficient solutions, will continue to see adoption in the coming years. The integration of AI and blockchain is expected to enhance smart contract functionality, contributing to the growth of decentralized ecosystems.

Regarding Central Bank Digital Currencies (CBDCs), the report forecasts the coexistence of CBDCs with traditional currencies in the near future. CBDCs are virtual representations of fiat currencies supported on blockchains, bringing transparency to expenditure records. Issued by central banks, CBDCs will facilitate online payments with faster transaction speeds and international fund transfers.

The report also addresses the advancement of regulatory and ecosystem maturity related to blockchain, with smaller agile countries leading the way and larger nations following suit. The EU recently passed the Artificial Intelligence (AI) Act to safeguard citizens against AI risks and promote safe development environments for AI growth in Europe.

The EU has not yet commented on the findings of the EUBOF report. With the implementation of MiCA regulations for the crypto sector and the AI Act, Europe is poised to embrace the opportunities presented by blockchain and AI technologies in the evolving digital landscape.