The Association for the Development of Digital Assets (Adan), a French association comprised of 200 blockchain and cryptocurrency companies, has submitted a report to the European Union (EU) institutions. The report includes twenty-two recommendations on how Europe can leverage blockchain and cryptocurrency technologies to enhance data protection policies. Adan released its report on May 6, in anticipation of the European Parliament elections scheduled for June.
According to the report, Europe has drawn half of all global investments in the crypto and blockchain industries. Between 15% and 23% of residents in EU member countries own crypto, indicating "a natural societal transition towards a more digital and democratic world." The report states that Europe now finds itself "at a critical juncture in its digital transformation, possessing formidable advantages to lead the change in this technological revolution," including innovative regulations. Adan noted that while central banks have started to appreciate the benefits of blockchain technology such as transparency and immutability, Web3's potential extends beyond the financial sector. Blockchain technology could potentially enhance areas like data security, copyright protection, and public service efficiency.
The report suggests that Web3 is likely to play "a pivotal role in shaping our collective future," so Europe would benefit from intensifying its efforts to integrate blockchain technologies into its strategic planning. Adan's first recommendation to the European Parliament is to bolster its strategic autonomy and "invigorate" its economy by supporting the tokenization of national currencies by Central Banks as well as backing private stablecoins pegged to the euro. According to Adan, the blockchain technology underpinning tokenized currencies can minimize inefficiencies in the monetary system such as slow transaction speeds while enhancing transparency and security of transfers and settlements. Furthermore, Adan recommended that startups in the blockchain and digital assets industries should have access to sufficient funding. The EU should also persist with implementing "experimental legislative frameworks" for different Web3 verticals and establish educational training programs for Web3 for both private and public sector participants.
According to the report, Adan stated that blockchain technology can support human rights initiatives in various ways. Blockchain can be used to securely and immutably record human rights violations, "ensuring that they remain accessible for future generations seeking truth and justice." The transparency and immutability of blockchain can also augment efforts related to data security, intellectual property protection, and counterfeiting combat.
Adan was established in 2020, as per the report. The association is made up of 200 member companies, which include crypto and blockchain-focused companies as well as entities such as banks and investment firms.