1/ Europe🤝Web3
The EU economy is struggling in the web era. Our share in global equity markets has halved over the past 20 years.
Web3 is THE opportunity we have long been waiting for. I wrote an article on why the EU should embrace crypto 👇🧵
law.stanford.edu/2021/11/12/eur…
The EU economy is struggling in the web era. Our share in global equity markets has halved over the past 20 years.
Web3 is THE opportunity we have long been waiting for. I wrote an article on why the EU should embrace crypto 👇🧵
law.stanford.edu/2021/11/12/eur…
2/ In between 2 jobs, I finally had time to structure this strain of thoughts.
Between Chinese tech-authoritarianism & FAANG in the US, Europe has been striving for a “third way” tech policy for years - with very limited results.
Web3 perfectly embodies this "third way".
Between Chinese tech-authoritarianism & FAANG in the US, Europe has been striving for a “third way” tech policy for years - with very limited results.
Web3 perfectly embodies this "third way".
3/ In this @StanfordLaw article, I discuss three major arguments:
1. Web3 for digital sovereignty.
2. Web3 for financial independence.
3. Web3 for economic revival.
Here comes a brief summary of these. Please check out the article for a more comprehensive analysis.
1. Web3 for digital sovereignty.
2. Web3 for financial independence.
3. Web3 for economic revival.
Here comes a brief summary of these. Please check out the article for a more comprehensive analysis.
4/
1. Web3 is the EU's road to digital sovereignty.
The concept of digital sovereignty - the self-determined control in opposition to government/company power - underpins every single digital policy project in the EU: The GDPR, Digital Markets Act, Digital Services Act.
1. Web3 is the EU's road to digital sovereignty.
The concept of digital sovereignty - the self-determined control in opposition to government/company power - underpins every single digital policy project in the EU: The GDPR, Digital Markets Act, Digital Services Act.
5/ These regulations have had some success. EU citizens are more aware of their data rights, for instance (erasure, portability etc.).
However, the big downside is quite obvious: An increasingly user-unfriendly internet full of ubiquitous cookie popups & privacy consent forms.
However, the big downside is quite obvious: An increasingly user-unfriendly internet full of ubiquitous cookie popups & privacy consent forms.
6/ Web3 solves that. It is the perfect vehicle towards digital sovereignty.
It is an internet owned by builders & users orchestrated by tokens.
Core Web3 concepts:
❎
❎open.spotify.com/episode/3U4wMK…
@tferriss @cdixon @naval
It is an internet owned by builders & users orchestrated by tokens.
Core Web3 concepts:
❎
https://twitter.com/paddi_hansen/status/1455257184451895304
❎open.spotify.com/episode/3U4wMK…
@tferriss @cdixon @naval
7/ Copyright infringements/piracy were not solved through regulation, but through technological alternatives (Netflix, Spotify).
Digital sovereignty won't be solved through regulation, but the adoption of an alternative internet architecture (#Web3) with these values built-in.
Digital sovereignty won't be solved through regulation, but the adoption of an alternative internet architecture (#Web3) with these values built-in.
8/
2. Crypto will make the EU financially independent from the US.
The US is dominating global finance.
❎USD denominates large parts of cross border activity/securities/derivatives/FX trades
❎Largest capital markets
❎Global payment giants - VISA/Paypal etc.
❎SWIFT influence
2. Crypto will make the EU financially independent from the US.
The US is dominating global finance.
❎USD denominates large parts of cross border activity/securities/derivatives/FX trades
❎Largest capital markets
❎Global payment giants - VISA/Paypal etc.
❎SWIFT influence
9/ In short: The dollar gives the US leverage. No EU bank/firm can afford to to lose access to USD-payments.
This became crystal-clear to everyone when the EU’s strong efforts to bypass former President Donald Trump’s Iran sanctions failed completely.
foreignaffairs.com/articles/europ…
This became crystal-clear to everyone when the EU’s strong efforts to bypass former President Donald Trump’s Iran sanctions failed completely.
foreignaffairs.com/articles/europ…
10/ Open & decentralized #Crypto rails will inevitably reduce the US-dominance.
For its own sake & its human rights agenda, the EU should pioneer blockchain-based payments.
It should oppose both the politicized USD-system & the Chinese CBDC response, a tech surveillance tool.
For its own sake & its human rights agenda, the EU should pioneer blockchain-based payments.
It should oppose both the politicized USD-system & the Chinese CBDC response, a tech surveillance tool.
11/ To succeed, the EU needs EURO-stablecoin growth.
99% of stablecoin market is USD-denominated, bringing
❎FX risks for EU consumers
❎US political influence
❎decr. effectiveness of ECB monetary policy
Currently proposed rules need to be revised 👇
law.stanford.edu/2021/01/12/new…
99% of stablecoin market is USD-denominated, bringing
❎FX risks for EU consumers
❎US political influence
❎decr. effectiveness of ECB monetary policy
Currently proposed rules need to be revised 👇
law.stanford.edu/2021/01/12/new…
12/
3. Web3 is THE opportunity for economic revival.
Of the world’s 20 largest tech giants, not one is European. Europe accounted for 41 of the 100 biggest companies by market cap in 2000, down to 15 in 2021. Europe's share in global equity markets has halved over the past 20y.
3. Web3 is THE opportunity for economic revival.
Of the world’s 20 largest tech giants, not one is European. Europe accounted for 41 of the 100 biggest companies by market cap in 2000, down to 15 in 2021. Europe's share in global equity markets has halved over the past 20y.
13/ What is the way out of that decline?
Current EU officials bet mainly on
❎regulatory action (e.g. Digital Markets Act)
❎protectionist measures (e.g. Chips Act)
❎large scale publicly funded tech projects (e.g. GAIA-X)
euractiv.com/section/digita…
Current EU officials bet mainly on
❎regulatory action (e.g. Digital Markets Act)
❎protectionist measures (e.g. Chips Act)
❎large scale publicly funded tech projects (e.g. GAIA-X)
euractiv.com/section/digita…
14/ I believe the EU should be betting on Web3.
a) It is the future of the internet & therefore the biggest economic opportunity of this century.
b) For once with regards to tech, the EU has a geopolitical, competitive advantage that could allow it to lead the way. 3 reasons 👇
a) It is the future of the internet & therefore the biggest economic opportunity of this century.
b) For once with regards to tech, the EU has a geopolitical, competitive advantage that could allow it to lead the way. 3 reasons 👇
15/
1. Europe is the largest crypto economy with over $1T in transactions and has probably the crypto-savviest population.
According to @chainalysis, Europe accounted for 25% of global crypto activity.
Also the EU has the highest number of #Bitcoin & #Ethereum nodes.
1. Europe is the largest crypto economy with over $1T in transactions and has probably the crypto-savviest population.
According to @chainalysis, Europe accounted for 25% of global crypto activity.
Also the EU has the highest number of #Bitcoin & #Ethereum nodes.
16/
2. The EU has the most advanced & harmonized regulatory framework upcoming.
The next phase of adoption will be institutional. And institutions need legal certainty.
The Markets in Crypto-Assets Regulation will provide that & harmonize the ruleset across the EU.
2. The EU has the most advanced & harmonized regulatory framework upcoming.
The next phase of adoption will be institutional. And institutions need legal certainty.
The Markets in Crypto-Assets Regulation will provide that & harmonize the ruleset across the EU.
17/ In the US, crypto regulation is kind of a mess.
It varies amongst states & lacks clear supervisory regimes.
Example: Coinbase has 50 different state regulators for money transmission or lending licenses, on top of the federal regulators FINCEN, SEC, CFTC, IRS, Treasury etc.
It varies amongst states & lacks clear supervisory regimes.
Example: Coinbase has 50 different state regulators for money transmission or lending licenses, on top of the federal regulators FINCEN, SEC, CFTC, IRS, Treasury etc.
18/
3. The EU has by far the biggest potential upside.
The USA has Wall Street/Silicon Valley/the Dollar. The disruption costs will be tremendous & the resistance fierce.
China supporting crypto (freedom tech) would be political suicide for the CCP.
cnbc.com/2021/09/24/wha…
3. The EU has by far the biggest potential upside.
The USA has Wall Street/Silicon Valley/the Dollar. The disruption costs will be tremendous & the resistance fierce.
China supporting crypto (freedom tech) would be political suicide for the CCP.
cnbc.com/2021/09/24/wha…
19/
The EU, in contrast, has
❎struggling banks since 2008
❎no web2 tech giants (exception: Spotify)
❎a currency under attack from around the continent
❎political support for financial independence, Web3 style digital sovereignty & decentralization generally
The EU, in contrast, has
❎struggling banks since 2008
❎no web2 tech giants (exception: Spotify)
❎a currency under attack from around the continent
❎political support for financial independence, Web3 style digital sovereignty & decentralization generally
20/ The cost-benefit analysis of an aggressive, head-on Web3 strategy seems quite favorable to the EU to me.
Or, as @punk6529 puts it, Europe could (& should) be the natural home for crypto.
We have a real shot at leading here.
@balajis
Or, as @punk6529 puts it, Europe could (& should) be the natural home for crypto.
We have a real shot at leading here.
@balajis
https://twitter.com/punk6529/status/1457370810679808006
21/ Web3/crypto is neither left nor right.
It is our single-biggest economic opportunity that even abides by our values of digital sovereignty, financial freedom & human rights.
We should be making it one of the key political priorities of this decade.
It is our single-biggest economic opportunity that even abides by our values of digital sovereignty, financial freedom & human rights.
We should be making it one of the key political priorities of this decade.
https://twitter.com/paddi_hansen/status/1456765338935308289
22/ To close with, the EU has some of greatest people in the space that will without any doubt lead that charge.
Builders like @StaniKulechov @RuneKek @DomSchiener @jutta_steiner @peterlih @BenPeterJones @MaxWallenberg @eric_demuth @omidaladini @_pgauthier @JulianLeitloff ...
Builders like @StaniKulechov @RuneKek @DomSchiener @jutta_steiner @peterlih @BenPeterJones @MaxWallenberg @eric_demuth @omidaladini @_pgauthier @JulianLeitloff ...
23/ Investors like @C_Angermayer, @miele, @DominikTo, @Justdoitalex, @AlexLangeVC, @frank_thelen, @2lr, @LeBastif & many more.
Political supporters like @f_schaeffler, @EvaKaili, @OKovarikMEP @joergkukies & many more.
Political supporters like @f_schaeffler, @EvaKaili, @OKovarikMEP @joergkukies & many more.
24/ Key stakeholders/supporters like @philippsandner @JulianGrigo @ambajorat @litocoen @alex_bechtel_de @FurkanCCTV @MareMueller @frankrhmueller @casparschlenk @KatharinaGehra @BenjaminMatten @archimate @iwaniez @MobileGeekGirl @Vicky4crypto @Julaz82
& many more (no space left)
& many more (no space left)
Thanks for making it until the end of this thread.
Please have a look at the more detailed article if you enjoyed it & feel free to follow me for further threads/content on Web3/DeFi/EU and other topics 🙏
law.stanford.edu/2021/11/12/eur…
Please have a look at the more detailed article if you enjoyed it & feel free to follow me for further threads/content on Web3/DeFi/EU and other topics 🙏
law.stanford.edu/2021/11/12/eur…
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