The EU Intends to create a fund of 400 million euros for the implementation of blockchain projects

Judy Rubio

A European investment fund is being created in the European Union, which will finance the development of blockchain technologies and artificial intelligence. The block will spend more than $670 million on these goals in 2019. 

The European Commission, together with the European Investment Fund (EIF), will form an investment fund, it will finance projects that implement blockchain technology and AI.

On the Way to Developing Blockchain Projects

To achieve the goal, the European Commission and EIF spent 100 million euros. It is predicted that in 2020, investors will replenish the fund an additional amount from 300 to 400 million euros. In the future, his funds may increase to one and a half to two billion dollars.

EIF representatives emphasized: "Investing in AI's innovative portfolio and blockchain firms will help form a dynamic community of investors in the European Union".

The publication stated that EU costs on initiatives related to blockchain will exceed $ 670 million in 2019. The bulk of the money is spent on testing and research concepts. Read the article “Regulation of cryptocurrency in Europe”, it discusses the current legal regulations regarding digital money in the EU.

In China, 319 million euros were spent for similar purposes, in the United States - 1.1 billion dollars.

What for does EU check concepts

Testing the concept is intended to demonstrate the practical implementation of a certain idea, method or technology that is used to work on an idea, method or technology. In the framework of this demonstration, a prototype is being formed, a computer or mathematical model, which is not necessarily a full-fledged product, but confirms the fundamental possibility of such formation.

Verification of the concept is useful in the following cases:

  • search for financing for projects that use technologies not previously used. Feasibility evidence reduces the risk of project failure for technological reasons;
  • selling of the technology or a company, main asset of which is technology. An example is Google’s acquisition of DeepMind, which offered a program for playing a computer game. In the future, the technology that Google received used in various products of the company;
  • checking the possibility of using the technology before launching large-scale production based on it;
  • confirmation of the performance of the patented technology.

Korean Authorities Will Invest $380 million in Development of Blockchain

The Ministry of Science of South Korea intends to spend 450 million won or 382 million dollars on the development of blockchain technologies. The department plans to allocate this amount in shares for 6 years in the period 2021-2026. The initiative aims to create the foundation for a data economy based on distributed ledger technology.

A state official said: “The problem of confidence in information can be solved by developing a data economy. Blockchain can build a trusted base for the exchange of information”. He shared that the agency is exploring the interoperability of blockchain, smart contracts, consensus algorithms, and scaling issues.

China's Cryptography Law: the desire to make friends or fully control cryptocurrencies?

Middle Kingdom passed the first cryptography law in the world. This has led to accelerated development of cryptocurrencies. Does the document really indicate China's friendly attitude towards the crypto industry?

Xi Jinping at the meeting of the Politburo of the Communist Party made a resonant statement. He prompted speed up work on standardizing blockchain-related solutions. The head of state said that the technology may be useful for the country's economy and will solve issues in various fields, including financial and reduce poverty.

Mr. Xi said: “We should set a key direction, focus on key technologies and accelerate the development of industrial and blockchain technologies.” He encouraged the support of innovative ideas in the field of distributed registry. According to him, this is a real breakthrough.

How Cryptography Law Will Affect Blockchain Technology in China

The legislative initiative will come in force only on January 20, 2020. Market participants are optimistic, which confirms the powerful development of cryptocurrencies in China. What does China really want to get? Will the country lift the ban on digital money trading?

FxPro commented on the situation: “The law on the regulation of blockchain activities has been signed. After that, lists were created with the largest blockchain organizations in the country. The news had a positive effect, as speculators use every opportunity. But after analyzing what happened, it may happen that everything is not as good on the cryptocurrency market as it seemed before”.

Many investors perceived the actions of the Chinese authorities as an attempt to accept cryptographic currencies, in fact, the draft law has other goals. Directly, the document reports that the authorities are vested with total control over cryptographic standards. This applies to commercial, key and generally accepted types of encryption. The Chinese government will be able to prevent data leakage, which poses a possible danger to citizens, legal entities and the state. The bill establishes penalties for violating safety principles.

The European Union perceives the development of blockchain technology seriously. Significant amounts are allocated for this purpose, legislative norms are being developed. China, the USA, South Korea and other states also pay special attention to the development of projects based on a distributed registry. If you plan to engage in blockchain technologies, it is worth considering the possibility of registering a company in the countries stated above. Maybe you will succeed and get the support from the state authorities.