EU Launches International Blockchain Association, Bringing Crypto One Step Closer to Mainstream Adoption

The European Union has officially launched the International Association of Trusted Blockchain Applications - with IBM, Accenture and Deutsche Telekom among the 100-plus members to have signed the association's charter at a ceremony at the European Commission in Brussels on April 4.

"Promote an open, transparent and inclusive global model of governance for blockchain and other distributed ledger technology infrastructures that reflects the shared interests of stakeholders from industry, start-ups and SMEs, civil society organisations, governments and international organisations."

"Developing a regulatory framework around distributed ledger and blockchain technologies is essential to their widespread adoption and growth," said Dominik Schiener, a co-founder and co-chair of the Iota Foundation.

Up until now, many companies and industries have flirted with the idea of integrating some kind of DLT, but it's only now that an international organization with government backing has been formed in order to create a standardized context for the implementation of blockchain technologies.

Given that blockchain generally operates in a way that transcends national boundaries, the EU's involvement in the association is pivotal, since it will provide companies and organizations with the assurance that their use of blockchain will comply with relevant standards and regulations, irrespective of location.

Recent surveys have shown that companies have drawn away from blockchain adoption as a result of the lack of regulatory certainty.

A September study from Deloitte also concluded that regulatory problems "Are another major barrier to blockchain adoption," in addition to a "Lack of standards and interoperability between various blockchain platforms and solutions."

A couple of months later, the EU then formed the European Blockchain Partnership, which was signed by 27 European Economic Area member states with the aim of establishing a European Blockchain Services Infrastructure capable of delivering cross-border digital services.

"What makes this association special is its focus on promoting trust in blockchain technology among public authorities and citizens. This association can also now become a natural interlocutor for all the regulators at EU and national level, for instance on standards and regulation. It will also be able to communicate with citizens about blockchain, a technology which should not be associated with obscure cryptocurrencies but with transparency traceability and a secure environment."

Even if the formation of INATBA is undoubtedly a significant achievement for the industry, it's also tempting to suggest that, working under the auspices of the European Commission, the newly launched association will end up doing something similar for blockchain.