By Kelly Clark and Grace Pulliam
EU Policy News
A Digital Euro – According to the European Central Bank, the digital euro would not replace cash, but instead serve as a “simple, universally accepted, safe and trusted means of payment” to supplement cash payments. The ECB is conducting an “investigation phase” that will run until October 2023 and explore the impact of a digital euro on retailers, markets, and legislation.
On 24 February, the European Commission launched an online platform for interested parties to share questions, insights, and opinions regarding the ongoing development of a potential European Digital Identity Wallet.
In response to the paradigm shift toward distributed technologies, the EC proposed the creation of a “trusted and secure” digital wallet in June 2021. These digital wallets will enable EU citizens to manage their digital identities and participate as autonomous agents in a variety of privacy-preserving transactions.
The EC is calling upon EU Member States to help refine this technology and collaborate on legislative and regulatory solutions to enable cross-border functionality for the digital wallet.
Data Act: Commission Proposes Measures for a Fair and Innovative Data Economy – The Data Act aims to give both users and companies more control over their data as it’s currently an “untapped” and “non-rival” good.
EU’s Sweeping Crypto Regulations Package One Step Closer to Ratification
On 14 March, the EU parliament’s Economic and Monetary Affairs Committee voted 31-4 in favor of a new draft of the Markets in Crypto Assets (MiCA) framework, which aims to regulate the issuance and trading of cryptocurrencies in the European Union.
The committee eschewed a provision that would’ve limited the use of cryptocurrencies that rely on a proof-of-work consensus mechanism (like Bitcoin), in favor of a new provision that would require the EC to come up with a “a legislative proposal to include in the EU taxonomy for sustainable activities any crypto-asset mining activities that contribute substantially to climate change, by 1 January 2025.”
U.S. Policy News
Executive Order on Ensuring Responsible Development of Digital Assets
President Biden issued a 10-section executive order on cryptocurrency. The order outlines measures to:
- Protect consumers, investors, and businesses and maintain global financial stability
- Reduce security risks
- Promote U.S. competitiveness in the space
- Ensure equitable access and responsible development of digital assets
- Research a United States Central Bank Digital Currency (CBDC)
Opportunities for the MOBI Community: Biden’s commitment to maintaining competitiveness in the digital assets space could mean more funding set aside for blockchain research and related projects. While future legislation surrounding blockchain/crypto is uncertain, MOBI remains hopeful that this executive order is a step in the right direction for mass adoption of blockchain and related technologies.
Learn more: Fact Sheet and Here’s What’s in Biden’s Executive Order on Crypto
Crypto: Josh Gottheimer Unveils Stablecoin Bill
On 15 February, Rep. Josh Gottheimer (D-NJ) introduced a draft for a piece of legislation aimed at defining and regulating the emerging stablecoin market.
Proponents of stablecoins claim they combine the interoperability of cryptocurrency with the stability of traditional national currencies.
Project Hamilton used cryptography, distributed systems, and blockchain technology to explore a potential US CBDC.
One code created was able to handle 1.7 million transactions per second
MIT and Boston Fed made the code available on GitHub
US to provide $5 Billion to Help States Build Network of EV charging stations
The Biden administration recently announced plans to dedicate $5B from the $1T Infrastructure Bill to the construction of electric vehicle charging stations across the United States.
The Federal Transportation and Energy departments will distribute the funds to qualifying states over a 5-year period. States must provide a detailed spending plan in order to be considered for disbursement.
A project to Fund Effective Policy Advocacy and Educate Lawmakers About the Positive Potential of Web 3.0 – LobbyDAO was created to support decentralized policy making by allowing LBY token holders to proactively advocate for DeFi and work together to educate lawmakers on the positive impact of Web3.
