The European Commission has been gaining interest in Blockchain technology and all its benefits. Recently, the Commission launched a forum to observe the potentials of the technology, as well as its repercussions, risks and what sort of opportunities it can bring to European Union. However, after a press release, the Commission still seems hesitant about making a final decision on the subject.
Using Blockchain Responsibly
As mentioned, to ensure that they are not missing out on a golden opportunity, the European Commission has launched an investigation to see what Blockchain technology has to offer. Blockchain’s high-security measures and traceability are two factors that have brought it to the Commission’s attention.
In their press release, the European Union made mentions of how they believe that this technology will “transform several industrial and commercial sectors including healthcare, insurance, finance, energy, logistics and intellectual property rights.
However, the fact that the EU has refrained from mentioning Bitcoin, or any cryptocurrencies, reveals their hesitation towards the technology’s reliability.
Blockchain as a Money Laundering Tool
Recently, Europol has been working to develop measures to fight against criminals using Blockchain technology to launder their money. According to Europol, “The use of cryptocurrency for criminal activities such as financing terrorism is at an all-time high.”
However, recent reports on cryptocurrency have shown that criminal activities on the Blockchain are down to about 0.61%, which represents a 40% drop since 2013.
Still, criminals continue to use the technology illegally. It is much easier to illegally transfer funds through the Blockchain than it is to transfer illegal funds through a bank. Therefore, the temptation will always be there. But, things seem to be changing since it is becoming increasingly difficult to hide behind a Bitcoin. Even the European Commission has now admitted to Blockchain superior level of security and traceability.
The financial needs of the department remain the most likely explication as to why Europol and the Commission’s opinions differ on the subject. Regardless, it is in the best interest of the beholder to ignore Blockchain’s disadvantages and focus on what it can offer society. Since, as with any type of system, there will always be two sides to every coin…or Bitcoin.