But this does not mean that different agencies in Europe could use blockchain technology. "The Blockchain Observatory and Forum will monitor developments and also inform our policy making", Valdis Dombrovskis, Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union said.
Mariya Gabriel, European Commissioner for Digital Economy and Society, said she saw blockchain as "a game changer".
This project aims to facilitate cross-border cooperation on the practical side of Blockchain cases, to create the right enabling environment for all citizens to benefit from. "The EU Blockchain Observatory and Forum is an important step in that direction". It forecasts that by 2020, it will fund up to €340 million (over $420 million) for projects that draw on blockchain technologies.
Gabriel said blockchain projects help where peer to peer security is the number one concern of users.
Many European innovators and entrepreneurs are already offering Blockchain-based solutions, according to the Commission. Of concern are the many initiatives from banks, insurance companies, stock exchanges and other business sectors, leading to diverse systems that can not work together.
The new blockchain hub is meant to support the Commission's work of FinTech.
This is not the first time that the European Commission pays attention to blockchain technology.
The body was launched on Thursday and is expected to play an active role in building expertise, showing leadership in the field of blockchain and helping Europe seize opportunities created by blockchain. It will be gathering information, monitoring and analysing trends, addressing challenges and exploring blockchains' socioeconomic potential.
To support the Observatory, the Commission has formed a partnership with ConsenSys, a startup which primarily develops software for the ethereum blockchain.
What is the European Commission?
The Blockchain Observatory and Forum was created as a European Parliament pilot project proposed by MEP von Weizsacker and is meant to support the Commission's work of FinTech.
Fintech development has been a major priority area for the European Union executive.
In November, the European Commission outlined proposals to reform financial supervision across the EU with a renewed focus on new technology developments and the promotion of the emerging fintech sector. The Commission is now working on a FinTech Action Plan, which will be presented in the spring.
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