Blockchain refers to the digital technology used by cryptocurrencies, in which transactions are recorded chronologically and publicly
Politicians will discuss how Luxembourg can take a more proactive approach in embracing blockchain technology in an exchange on Tuesday morning.
The finance commission will speak with finance minister Pierre Gramegna about proposals tabled in CSV MP Laurent Mosar’s motion regarding blockchain and distributed ledger technology.
“Luxembourg has a lot to gain in this new distributed technology race and should from now on seize opportunities that blockchain or DLR offer like tokenization,” Mosar wrote, adding that the technology could “revolutionise relations between public administrations and the public”. Among his proposals, the politician calls for the creation of a government blockchain task force, bringing together key actors in the financial and new technology sectors to make recommendations.
He suggests increasing the financial resources of financial regulator the CSSF better handle cases related to blockchain and DLT and creating a helpdesk to answer questions in relation to new technology like blockchain and cryptocurrencies.
The government should start on creating a legal framework to protect investors and adopt a position in relation to VAT and the taxing of revenue generated from cryptocurrencies. Furthermore, he called for a doubling of efforts to raise awareness among the public about the advantages of blockchain and push for blockchain regulatory harmonisation on an EU level.
Infrachain & Commission observatory
At the beginning of February 2018, the European Commission launched a blockchain observatory and forum to highlight developments, promote European actors and inform policy. Commissioner for the digital economy and society Mariya Gabriel said at the time she saw blockchain as “a game changer”.
The European Commission says that in future, it plans to explore its potential to improve cross-border European services in taxes, VAT reporting, customs, title and business registries, environmental, financial and company reports, health records management, clinical trials report, medicines registration and identity management.
Not-for-profit Infrachain was recently created in Luxembourg to accelerate the adoption of blockchain technologies by creating a community-driven network that brings together actors across all sectors of Luxembourg society.