In a new European Union (EU) pilot project that has been agreed upon and expected to be formally adopted in the first or second quarter of 2022, some existing laws have been waived to release new financial instruments in blockchain and digital ledger technology.
Johan Van Overtveldt, Member of the European Parliament:
Digital ledger technology; It can provide benefits such as reduced complexity, increased end-to-end transaction speed, enhanced network flexibility, and reduced operational and financial risks.
said.
What is the pilot program and what does it provide?
- Program of financial markets in the European Union will allow it to use blockchain technology.
- Distributed ledger technology market infrastructures officially “Pilot system” will be named.
- It will apply to equities, bonds and EU versions of mutual funds called UCITS.
- for shares 500 million euros, for bonds 1 billion eurosfor corporate bonds 200 million euros strict limits will be applied.
- New incoming companies will be allowed to participate, provided that they are subject to the same rules and regulations as previously accepted companies.
- The new program was introduced because current EU rules are too strict and prevent DLT from being used.
- A decision will be made every 3 years whether to extend the program or not.
- The program will also accept payments in different currencies. While the preferred currency is that of the central bank; fiat-based stablecoins, e-currency tokens and tokenized commercial bank coins will also be accepted.