EBSI, the European Union initiative to boost the blockchain ecosystem in the region, is adding new participants to facilitate collaboration between the public and private sectors in the technological field.
The European Commission has announced the addition of 41 regulators and authorities from 22 countries to the second cohort of the European Blockchain Sandbox Initiative (EBSI), which seeks to foster innovation in the use of Web3 technologies, such as blockchain and distributed ledger technology (DLT), with the aim of creating a regulatory framework that facilitates innovation.
Financial regulators and other participants added to EBSI will explore, together with various organizations and projects native to the crypto industry, the potential of blockchain in the public and private sectors.
According to the entity, the objective behind the incorporation of regulators is to foster an environment where blockchain and Web3 projects can openly discuss the legal and regulatory challenges facing the technology in the region.
Countries that have joined this second cohort include France, Spain, Italy, Germany, Netherlands, among others, demonstrating a collective commitment towards the adoption of decentralized solutions.
Unlocking the potential of blockchain technology and Web3
Through the participation of these authorities, the European Commission seeks to enable the technology industry to overcome regulatory obstacles that could limit its innovation, especially in the field of implementing blockchain-based solutions.
As this is an emerging technology, the European Commission has noted the need for regulators to become more familiar with this development, broaden their knowledge and improve their understanding, so that they can provide advice in a timely manner. The Commission also reported that, through the EBSI, it will support 20 projects developing blockchain and DLT-based use cases per year, assessing their business maturity and legal relevance in the context of the European Union's policy priorities.
IOTA: Transforming digital identity in Europe
Among the featured projects in this second EBSI cohort is IOTA, which has been selected to work on solutions related to digital identity and Know Your Customer (KYC) processes.
IOTA’s participation in the EU blockchain initiative opens the door to important discussions on privacy and regulation in the Web3 ecosystem, which is relevant considering the current moment in which regulators are re-evaluating their approaches to decentralized finance (DeFi).
What does IOTA bring to EBSI?
IOTA is positioned as one of the most prominent projects in the digital ecosystem. Its open-source technology, known as Tangle, stands out for its ability to operate without the limitations of traditional blockchains, making it ideal for applications that require high speed and efficiency in data management.
On its website, IOTA highlighted that Tangle offers a scalable and sustainable infrastructure that meets the specific needs of EBSI. Unlike conventional blockchains, IOTA does not use a proof-of-work system, so it can validate data and transactions with significantly lower energy consumption. This has allowed IOTA to reduce its environmental impact and eliminate transaction fees, making its use accessible to a wide range of users and institutions in Europe.
This network, which was selected for the first phase of the European initiative, will now focus on developing solutions that improve Know Your Customer (KYC) processes and digital identity management. IOTA trabaja currently in collaboration with several partners to integrate its technology into the EBSI infrastructure and enable European institutions to benefit from its advanced functionalities.
IOTA developers explained that EBSI’s infrastructure is well suited to explore a wide variety of use cases for the technology, ranging from digital management of educational credentials to document traceability and data sharing between authorities. In this regard, the IOTA Foundation is testing its platform with two new specific use cases, which have the potential to transform the way digital identities are managed and verified in Europe.
But, in addition to the advantages that IOTA offers to the European blockchain infrastructure, the network is also receiving benefits such as legal and regulatory advice, and the opportunity to discuss critical issues with regulators to facilitate the adoption of innovative solutions in the blockchain sector. Thus, by collaborating with EBSI, IOTA not only seeks to strengthen its position in the European blockchain ecosystem, but also contribute to the creation of a regulatory framework that favors innovation and interoperability between different platforms.
In summary, the European Blockchain Sandbox Initiative was established by the European Commission with the aim of creating a more predictable regulatory environment for decentralized technologies and the participation of projects such as IOTA represents a unique opportunity to transform the digital services infrastructure in Europe, driving innovation in the Web3 ecosystem.
