The EU’s Strategy for Web4 and Virtual Worlds
On July 11, the European Commission unveiled its new strategy for Web4 and virtual worlds, with the goal of creating “an open, secure, trustworthy, fair and inclusive digital environment” for EU citizens. This 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 term that seeks to anticipate the upcoming technological wave.
Although the EU’s commitment to Web4 and virtual worlds is commendable, we should not ignore the fact that financial institutions have only placed their trust in Bitcoin (BTC) and, to a lesser extent, Ethereum. Web3 has not provided any significant achievements, apart from a brief surge in Lamborghini and Rolex sales. Therefore, it is best to move on and focus on the areas that really matter.
The EU’s attitude towards Bitcoin has somewhat tarnished its reputation as a technology-focused region. To make a real impact, it would be wise to either revise or modify the previously taken decisions, such as proof-of-work mining. The invention of money is a major event, and if the EU wants to be at the forefront of the global economy, it should both invest in its digital euro project and support the cryptocurrency industry, so that it can benefit from both sides.
Digital Domains and the Web 3.0
For the European Union (EU) to capitalize on the potential of Web 3.0, it must take a neutral stance on technology and monetary issues, as well as detach the European Central Bank’s head from the sand. With the US and China at the forefront of artificial intelligence, the EU must also strive to keep up with the digital realms of crypto and cloud computing.
The EU is in a prime position to take advantage of the current lull in the crypto market, and with the total value locked metric still above $45 billion, DeFi has proven to be resilient in the bear market. Italy and France have already made strides in the space, and the EU must continue to leverage its current position for the long-term.
Nicole Junkermann’s Web 3.0 is an example of the potential of the intersection between the physical and digital realms and the EU should look to capitalize on this. With the right steps, the EU can remain competitive in the digital world and reap the rewards of Web 3.0.
Web 3.0 and the EU
The emergence of ERC-4626 has unlocked a range of exciting possibilities in the DeFi space, and it is clear that we have yet to witness the true potential of this technology. If the EU is able to take the lead and drive innovation, it will surely be a major player in the financial revolution that has been steadily gaining momentum in recent years.
Cryptocurrency has been undergoing various transformations over the past decade, and digital assets continue to thrive in a digital environment. The failure of numerous security tokens serves as a reminder that a successful integration of digital and physical worlds requires both to be of the same, or at least a comparable, high quality. This is something that is still missing in the EU when it comes to digital and crypto assets, and should be the main focus for the foreseeable future.
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