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On July 11, the European Commission formally adopted its new strategy on Web4 and virtual worlds with the aim of ensuring “an open, secure, trustworthy, fair and inclusive digital environment” for European Union citizens. The strategy is based on four main pillars, revolving around the empowerment of human resources, support of businesses, further development of public services, and shaping of global standards for “Web 4.0” — a freshly coined term that attempts to preempt the next technological wave.

While it’s commendable that the European Commission is proactively strategizing for the EU to take the lead on Web 4.0, or Web4, and virtual worlds, we shouldn’t neglect the fact that for all the fanfare of Web3 and the trends that accompanied it, notable credit and financial institutions have so far only firmly and mainly placed their confidence in Bitcoin (BTC) and, to a lesser extent, Ethereum.

Indeed, it is difficult to assert that Web3 left anything of considerable substance behind it — aside from a sharp but short-lived spike in the Lamborghini and Rolex markets. The sooner that term is forgotten, the sooner we’ll be able to focus again on the areas that do matter.

Related: It’s time for the SEC to settle with Coinbase and Ripple

The EU’s general stance on Bitcoin has arguably detracted from its image as a forward-looking, technology-advancing region, and it would do well to either retract or modify previously taken positions on matters such as proof-of-work mining. The reinvention of money is far from a light matter, and if the EU is to take a pincer hold of what ultimately makes the world move, it is well-advised to do so by both advancing its digital euro project and also supporting the other side of the coin, thereby hedging its position to a degree where it is minimizing risks and maximizing possible opportunities.

In order to do so, it must proverbially unstick the European Central Bank’s head from the sands, limit any anti-Bitcoin publications from the famed Fabio Panetta, and adopt a neutral monetary stance that aligns with a technology-neutral one.

Moving on to the cornerstone of the proposed strategy on Web4 — digital twinning — it is evident that the EU faces stiff competition from stalwarts such as the United States and China in digitally dominant areas such as artificial intelligence. While one may argue that, on the physical side of things, the EU enjoys a notable position in areas such as manufacturing and global exportation of goods, there is still an appreciable degree of catching up to do in relation to digital areas such as crypto and cloud computing.

In order for the EU to take the lead on the intersection between the physical and digital realms, it must ramp up its efforts to emancipate digitally exclusive domains such as crypto, which presents notable opportunities given the current lull in the market. While most are forgoing innovations such as decentralized finance (DeFi) and decentralized autonomous organizations as passing trends that have recently exited the limelight, it is clear that these are still very early days for such topics, and that optimally positioning oneself while the general attention is elsewhere will very likely pay handsome dividends in a few years’ time.

Related: Demand is driving the price of Bitcoin to $130K

When it comes to DeFi, specifically, Europe as a continent has quietly asserted itself as a leader, with countries such as Italy and France being the birthplace of some of the most notable projects in the space. It would not do to ignore the advantageous position gained in the market in this respect, and with the total value locked metric still hovering comfortably above the $45 billion mark, it is amply clear that DeFi staunchly took the bear market punch and is nowhere near knocked out. It’s also likely to come back for more in the next market reversal.

With innovations such as ERC-4626 ready to unlock a wealth of exciting new prospects in the space, it is safe to state that we have yet to see DeFi’s true strengths and potential, and if the EU manages to take the helm and steer innovation going forward, it will cement its place in the inevitable financial revolution that has been bubbling in its pot for the past few years.

Over the past decade, cryptocurrency has been reinvented and reshaped to no avail. The promise of a new form of money still remains its strongest premise, and digital assets flourish best in a digital environment. The lessons learned from the repeated security token flops should still be fresh enough to accentuate the fact that we are not yet ready for a seamless intersection between what is digital and what is physical, and that in order for two subjects to simultaneously succeed, there must be a comparable, if not identical, level of excellence.

That is something that is still sorely missing in the EU when it comes to digital and crypto assets, which is why it should remain the focus in the short term.

Jonathan Galea is the CEO and founder of BCAS, a European crypto regulatory consultancy firm. He has consulted numerous regulatory entities across multiple jurisdictions on crypto-related matters, including the structuring of novel legal frameworks. He holds in an LL.D. in law from the University of Malta.

Matteo Vena is the chief strategy officer at BCAS, a crypto-focused regulatory consultancy firm based in Europe. His area of focus is business and marketing strategy in the Bitcoin and digital assets industry. He worked previously as the managing director for Cointelegraph Italy and as the head of content for Blockchain Week Rome.

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

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Pressure mounts on PM to raise Israel’s Gaza offensive with Trump

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Pressure mounts on PM to raise Israel's Gaza offensive with Trump

Sir Keir Starmer is under mounting pressure to raise Israel’s bombardment of Gaza with Donald Trump during his UK state visit, after a UN Commission said a genocide was taking place.

Liberal Democrat leader Sir Ed Davey used the president’s arrival on Tuesday night to call for action on the escalating situation, as Israeli forces advance in Gaza City.

Sky News analysis has found thousands of families remain in the city’s crowded tent camps, despite a ground offensive beginning yesterday.

Sir Ed, who is boycotting the state dinner being held for Mr Trump, said Sir Keir must “press” the president now.

He said: “What is happening in Gaza is a genocide. And the president of the United States, who wants a Nobel Peace Prize, is doing nothing to stop it.”

Displaced Palestinians flee northern Gaza. Pic: AP
Image:
Displaced Palestinians flee northern Gaza. Pic: AP

On Tuesday, a United Nations Commission agreed Israel was committing genocide in Gaza – the first time such an explosive allegation has been made publicly by a UN body.

Israel‘s foreign ministry said it “categorically rejects this distorted and false report” and called for the commission to be abolished.

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Is Israel committing genocide?

‘We cannot be bystanders’

Reports suggest the situation will be a talking point between Sir Keir and Mr Trump during his visit.

It comes before the UK is due to recognise a Palestinian state at the UN General Assembly later this month, along with allies including Canada and France.

In a late night statement, Canada’s foreign ministry described the Gaza City offensive as “horrific”.

Lib Dem leader Sir Ed added: “We have long said that Hamas is genocidal and condemned them for their actions.

“Now, I think we have to say that what the Netanyahu government is doing amounts to genocide.”

Labour MP Rosena Allin-Khan, a former shadow minister, also called on her party leader to make discussing the situation in Gaza with Mr Trump a “top priority”.

Speaking to Sky News’ Politics Hub With Sophy Ridge, she said: “We say ‘never again’ when we look at Bosnia and Rwanda, but here we are again, and it’s been livestreamed, and we’ve all seen it.

“We cannot be bystanders to a genocide.”

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‘We cannot be bystanders’

UN report pulls no punches

The accusation of genocide is made by the UN Independent International Commission of Inquiry on the Occupied Palestinian Territory.

It alleges Israel has been “killing Palestinians or forcing them to live in inhumane conditions that led to death; causing serious bodily or mental harm, including through torture, displacement and sexual crime; deliberately imposing inhumane conditions, and fourthly, imposing measures intending to prevent births”.

Read more from Sky News:
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Trump sues New York Times

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Earlier this month, the International Association of Genocide Scholars also passed a resolution stating that Israel’s conduct passed the threshold of committing genocide.

However, a report from the British government said it had “not concluded” that Israel intended to “destroy in whole or in part a national, ethnic, racial or religious group”.

Nearly 65,000 people are now believed to have died, according to figures collated by Gaza’s Hamas-run health ministry. It does not distinguish between civilians and combatants in its count.

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No 10 insists migrant returns deal isn’t a ‘shambles’ after court blocks man’s removal

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No 10 insists migrant returns deal isn't a 'shambles' after court blocks man's removal

Downing Street has insisted its migrant returns scheme with France is not a “shambles” after the High Court blocked a man’s deportation.

Having seen the previous Conservative government’s Rwanda scheme run into trouble with the courts, the Labour administration’s alternative suffered its own setback on Tuesday.

An Eritrean man, who cannot be named for legal reasons, was due to be on a flight to France this morning.

He brought a legal claim against the Home Office, with lawyers acting on his behalf saying the case “concerns a trafficking claim”.

They also said he had a gunshot wound to his leg, and would be left destitute if he was deported.

The Home Office said it was reasonable to expect him to have claimed asylum in France before he reached the UK in August, but the ruling went in his favour.

Mr Justice Sheldon granted the man a “brief period of interim relief”.

While the judge said there did not appear to be a “real risk” he would face destitution in France, the trafficking claim required further interrogation.

He said the case should return to court “as soon as is reasonably practical in light of the further representations the claimant […] will make on his trafficking decision”.

A Number 10 spokesperson downplayed the development, insisting removals under the deal with France will start “imminently” and ministers are not powerless in the face of the courts.

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‘One in, one out’ deal: What do we know?

‘We told you so’

The pilot scheme was announced to much fanfare in July, after Emmanuel Macron made a state visit to the UK.

Sir Keir Starmer had hoped the agreement – which would see the UK send asylum seekers who have crossed the Channel back over to France in exchange for migrants with links to Britain – would prove more resilient to court challenges than the Tories’ Rwanda plan.

He wants the number of migrants being returned to France to gradually increase over the course of the scheme, to deter them from coming in small boats.

The pilot came into force last month and is in place until June 2026.

Tory leader Kemi Badenoch was quick to say “we told you so” following Tuesday’s court decision, while Reform UK’s Nigel Farage criticised the government’s plan.

Mr Farage – who has said he would deport anyone who arrives in Britain illegally – said: “Even if the policy worked, one in, one out, and with another one in, still means plus one for everyone that crosses the Channel.”

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Migrant deal with France has ‘started’

The small boats crisis represents one of the biggest challenges for the new home secretary, Shabana Mahmood, following her promotion in Sir Keir’s recent reshuffle.

Speaking to Sky News’ Politics Hub With Sophy Ridge, Labour peer Maurice Glasman backed her to deliver.

Describing the former justice secretary as “very tough”, he said: “She’s completely for real. I’ve known her for over 10 years – she really wants to see law and order restored.”

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UK to strengthen ties with US on crypto matters: Report

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UK to strengthen ties with US on crypto matters: Report

UK to strengthen ties with US on crypto matters: Report

The UK has discussed adopting a more crypto-friendly approach with the US in a bid to boost industry innovation and attract more investment to Britain.

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