#67 EU Prepares for a Digital Euro. Romanian Chosen by The EU Commission To Lead Metaverse Policy Initiative.
Disclaimer: Everything we write in "The Crypto Insider Report" is an x-ray of the industry as we see it, through the lens of publicly available information. We are not financial advisors.
EU Prepares for a Digital Euro
The European Commission is working on a bill to support a potential digital Euro CBDC. Although no decision was taken on the matter of even having a digital Euro, it’s clear that the executive body of the European Union wants to be prepared, should the moment arrive.
Enabling a digital currency at EU scale is no small task. New laws cementing it as money, as well as anti-money-laundering regulations would be needed. Mairead McGuinness, the EU's financial-services commissioner said that “It will be negligent if Europe did nothing now, but at some point in five or 10 years had to urgently rush through something.”
Although the bill is set to be published at the end of May, lawmakers are split on whether the initiative makes sense or not. Some are questioning the need for a digital Euro, while others support it. Furthermore, when it comes to the characteristics of the new currency, agreement on its capabilities is also missing. Fabio Panetta, an executive board member of the European Central Bank (ECB), said that the digital Euro will never be programmable, meaning that the concerns Web3 supporters have against CBDCs not allowing people access to their money would not materialize. Others support the programmable nature of this new currency as it would allow embedding rules such as “only pay for food with food stamps”. As always, what is the intended use of a feature versus what it actually ends up being used for are two different topics.
All in all, it’s still early to say whether we’ll have a digital Euro and if so, how it will work. It is, however, clear that the lawmakers are preparing to support it.
Mihnea
================
Highway to adoption
“The institutions are coming!”, “Retail is back!”, “My grandma asked me about $DOGE!” are all exclamations we hear in regard to blockchain (and crypto) penetrating the high walls of adoption. However, everyone but the class of ‘21 is sick of hearing the same, never-ending things. What’s at the heart of true crypto adoption and when will we have it?
Certainly, we haven’t been able to get our moms to sign transactions using Metamask. Or if you have, just know you’re one lucky person. Telephones, Emails and Social Media apps have had their fair share of struggles when trying to cater to all people. And today, Facebook has nearly 3 billion monthly active users. Can we get there? And if so, how fast?
To get there, we need crypto to feel like something other than crypto. Using it has to completely miss the currently-stigmatized view the general population has over it, and at the core of it are bad actors (scams, rug pulls, exploiters). To me, the most probable way of getting to most people is a change in how we market ourselves. Exchanging illiquid tokens on obscure DEXes or flipping obscene NFTs is not going to cut it.
Instead, let’s take the example of Web3 loyalty programs. Companies all over the world are already pivoting toward Web3, so let’s take advantage of that and emphasize ownership and control. Let companies interact closely with their customers and run contests and allowlists and reward purchases with non-tradeable NFTs. Or create a burning mechanism for those NFTs which can then redeem IRL products or services. These tokens don’t need to be readily-tradeable for USD, thus leaving out the “get rick quick” public.
Using your favorite brand’s app for in-app purchases or scanning your QR code can come with automatically creating a decentralized wallet for your tokens. With friendly UI/UX, you won’t even feel the difference from current loyalty programs. What better way to engage users than already successful incentive programs - this time using the blockchain in a (literally) seamless way? Familiarizing them with transactions and ownership then opens the gate to the larger decentralized ecosystem.
This also sets an easier path for regulators. There are clear laws established for this sector, as well as precedents. A few such successful initiatives and policymakers will better understand the benefits of crypto (for consumers AND businesses) - and hopefully, turn their hearts around.
Matei
================
Romanian Chosen by The EU Commission To Lead Metaverse Policy Initiative
Romanian Deputy, Andi Cristea, was appointed to manage the Metaverse file at the European level, on behalf of the Parliamentary Assembly of the European Council.
The decision was taken, by vote, on Thursday, January 26, within the Committee for Culture, Science, Education, and Media of APEC, gathered in Strasbourg during the first plenary session of 2023. The Romanian candidate obtained the majority of votes while competing with two other candidates from Switzerland and Denmark.
As the rapporteur of the Assembly, Deputy Cristea is due to examine the relevant aspects regarding Metaverse policy and the role that the European Council should have in revising existing systems and standards.
Following the adoption of a resolution on this topic, the European Council can propose recommendations to member states on how democracy, human rights, and the rule of law can be protected and promoted with reference to this revolutionary new technology.
Andi Cristea is a well know supporter of technological innovation and paid close attention to the Web3 space in recent years. Recently, he was present at public debate between the Web3 industry and policymakers from Romania, organized by Stakeborg, where he contributed with questions and ideas.
This initiative on virtual words is due May 3rd and rumors have it that it is unlikely to propose new laws. It is also believed that increased attention will be paid to Meta Platforms’ incursion into the sector, with EU Antitrust Officials being worried about competition in the Metaverse.
Evelyne
For more educational crypto content, check out the links below:
The Stakeborg DAO Talks on YouTube: https://www.youtube.com/playlist?list=PLOrFZZifNn4Nx4nSQL3WS52ALPXgrTSVG
Discord channel: https://discord.com/channels/901898461568442458/903006233584341052
StakeborgDAO Quarterly Reports: https://docs.stakeborgdao.com/reports/dao-quarterly-reports
Stakeborg Academy: https://academy.stakeborg.com/
🙏👷🏼♂️🧱