The European Commission’s Web4 strategy may be a flop

On 11 July, the European Commission formally adopted its new strategy on Web4 and the virtual world, with the aim of ensuring “an open, secure, trustworthy, fair and inclusive digital environment” for EU citizens. The strategy is based on four main pillars, which revolve around the empowerment of human resources, the support of businesses, the further development of public services and the shaping of global standards for “Web 4.0” – a newly coined term that describes the next technological evolution. Tries to stop the wave. ,

While it is commendable that the European Commission is actively strategizing for Web 4.0, or Web4, and the EU to take the lead on the virtual world, we should not overlook the fact that with all the fanfare of Web3 and the trends associated with it, For, it is worth mentioning that credit and financial institutions have so far placed their trust firmly and mainly only on Bitcoin (BTC) and to a lesser extent Ethereum.

In fact, it’s hard to claim that Web3 left anything of substantial material behind it – other than a sharp but short-lived boom in the Lamborghini and Rolex markets. The sooner that word is forgotten, the sooner we can focus again on the areas that matter.

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The EU’s general stance on bitcoin has arguably dented its image as a forward-looking, technology-advanced sector, and would do well to retract or modify previously taken positions on matters such as proof-of-work mining. . Reinventing money is no easy matter, and if the EU is to have a firm grip on where the world ultimately heads, it must do so by advancing its digital euro project and supporting the other side. is advised. of the coin, thereby securing its position to a degree where it is minimizing risk and maximizing potential opportunity.

To do so, it would have to proverbially pull the European Central Bank’s head out of the sand, limit any anti-Bitcoin publications from famed Fabio Panetta, and adopt a neutral monetary stance that aligns with technology-neutral .

EU introduces its Web4 and virtual worlds strategy

The strategy is in line with the 2030 objectives of the Digital Decade policy program and its three key pillars of digitisation: skills, business and public services.

The outlook for the EU economy… pic.twitter.com/lg1X5Yvccj

— FanB_Web3 (@FanB_Web3) 12 July 2023

Moving on to digital twinning – the cornerstone of the strategy proposed on Web4, it is clear that the EU faces stiff competition from giants such as the United States and China in digitally dominant sectors such as artificial intelligence. While one could argue that, on the physical side of things, the EU enjoys a remarkable position in areas such as manufacturing and the global export of goods, there is still much progress to be made with respect to digital sectors such as crypto and crypto. cloud computing.

For the EU to lead the interconnection between the physical and digital spheres, it must increase its efforts to liberate digitally specialized domains such as crypto, which present remarkable opportunities given the current downturn in the market. While most are passing on innovations such as decentralized finance (DeFi) and decentralized autonomous organizations that have been out of the limelight recently, it is clear that these are still very early days for such topics, and while general attention Keep yourself in a better position. There is a possibility of getting good dividends elsewhere in a few years.

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When it comes to DeFi specifically, Europe as a continent has quietly established itself as a leader, with countries like Italy and France being the birthplace of some of the most notable projects in the space. The advantageous position the market has gained in this regard would be unwise to ignore, and with the total value locked metric still hovering comfortably above the $45 billion mark, it is abundantly clear that DeFi has firmly taken the punch in the bear market. Has taken and is nowhere close to knocking. Outside. It is also likely to come back higher in the next market reversal.

With innovations such as ERC-4626 set to open up a wealth of exciting new possibilities in this area, it is safe to say that we have yet to see the true power and potential of DeFi, and if the EU is ready to take the lead and innovate manages to pursue. In the long run, it will cement its place in the inevitable financial revolution that has been simmering in its cauldron for the last few years.

Over the past decade, cryptocurrencies have been re-invented to no avail. The promise of a new form of money still remains its strongest foundation, and digital assets thrive best in a digital environment. The lessons learned from repeated security token flops should still be fresh enough to emphasize the fact that we are not yet ready for a seamless interconnection between what is digital and what is physical, and the two disciplines To be successful together, they must have comparable, if not equal, levels of excellence.

The European Union is still missing out when it comes to digital and crypto assets, which is why the focus should remain in the short term.

This article is for general information purposes and should not be construed as legal or investment advice. The views, opinions and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.