Recent media reports suggest a new cryptocurrency legislation for safe cryptocurrency exchange could be introduced in the EU countries. By this new legislation, under the new guidelines, Bitcoin and other digital currencies will be named monetary instruments all through Europe. This means legal cryptocurrency exchange will be more transparent than ever. Moreover, it is said that this new legislation will encourage the innovation associated to crypto and blockchains sector.
One area looking to new innovation using the blockchain is the cross-border money movement in multi-commodity trading business, which is very complex. There are a number of stakeholders, intermediaries and banks operating together to make deals happen. The supply chain deals are massive in value and happen very frequently.
“Many traditional banks have recently exited trade finance sector because it's simply too risky for them,” said Ali Amirliravi, CEO of LGR Global. “The banks that stay have no incentive to optimize the inefficient processes, that’s because as the companies are working to gather up all the required documentation and address the compliance needs, the banks are sitting back and charging interest - they actually don’t care how long it takes, it’s the trading companies that have to pay the extra fees.
"It gets even worse in what we call the 'Silk Road Countries'- the areas between Europe, Central Asia and China. Here you really see big differences within the supply chains and they also have to deal with large number of different currencies. You’ve got some companies that are using all manual, paper based processes and others that are moving into digital - there’s no standardization and that’s a real problem."
Ali Amirliravi’s LGR Global is a member of the Silk Road Chamber of International Commerce - an international association with the aim of increasing trade amongst members and states.
“These issues outlined are brought up frequently at the high-level meetings of the chamber of commerce,” said Amirliravi . “The influence of my own experience in the industry mixed with the stories of other stakeholders really pushed me to start to create end-to-end digital system. We are building a better way to do things, one that is faster, cheaper and more transparent for all parties involved. “
“It comes down to integrating new technologies in smart ways. Take my company for example, LGR Global, when it comes to money movement, we are focused on 3 things: speed, cost & transparency. To address these issues, we use leading technologies such as blockchain, digital currencies, and general digitization to optimize the existing processes.
It's quite clear the impact that new technologies can have on things like speed and transparency, but when I say it’s important to integrate the technologies in a smart way that’s important because you always have to keep your customer in mind - the last thing we would want to do is introduce a system that actually confuses our users and makes his or her job more complicated. So on one hand, the solution to these problems is found in new technology, but on the other hand, it’s about creating a user experience that is simple to use and interact with and integrates seamlessly into the existing systems. So it’s a bit of a balancing act between technology and user experience, that’s where the solution is going to be created.
When it comes to the broader topic of supply chain finance, what we see is the need for improved digitalization and automation of the processes and mechanisms that exist throughout the product lifecycle. In the multi-commodity trading industry, there are so many different stakeholders, middlemen, banks, etc. and each of them have their own way of doing this - there is an overall lack of standardization, particularly in the Silk Road Area. The lack of standardization leads to confusion in compliance requirements, trade documents, letters of credit, etc., and this means delays and increased costs for all parties. Furthermore, we have the huge issue of fraud, which you have to expect when you are dealing with such disparity in the quality of processes and reporting. The solution here is again to use technology and digitalize and automate as many of these processes as possible - it should be the goal to reduce risks and take human error out of the equation.
And here is the really exciting thing about bringing digitalization and standardization to supply chain finance: not only is this going to make doing business much more straightforward for the companies themselves, this increased transparency and optimization will also make the companies much more attractive to outside investors. It’s a win-win for everyone involved here.”
Digital transformation: Importance, benefits and EU policy
Learn how the EU is helping to shape a digital transformation in Europe to benefit people, companies and the environment.
The digital transformation is one of the EU's priorities. The European Parliament is helping to shape the policies that will strengthen Europe's capacities in new digital technologies, open new opportunities for businesses and consumers, support the EU's green transition and help it to reach climate neutrality by 2050, support people's digital skills and training for workers, and help digitalise public services, while ensuring the respect of basic rights and values.
MEPs are preparing to vote on a report on shaping the digital future of Europe, calling on the Europea Commission to further tackle challenges posed by the digital transition, especially to take advantage of the opportunities of the digital single market and to improve the use of artificial intelligence. What is digital transformation?
- Digital transformation is the integration of digital technologies by companies and the impact of the technologies on society.
- Digital platforms, the Internet of Things, cloud computing and artificial intelligence are among the technologies affecting ...
- ... sectors from transport to energy, agri-food, telecommunications, financial services, factory production and health care, and transforming people's lives.
- Technologies could help to optimise production, reduce emissions and waste, boost companies' competitive advantages and bring new services and products to consumers.
Funding of the EU's digital priorities
Digital plays an essential role in all EU policies. The Covid crisis accentuated the need for a response that will benefit society and competitiveness in the long run. Digital solutions present important opportunities and are essential to ensuring Europe's recovery and competitive position in the global economy.
The EU's plan for economic recovery demands that member states allocate at least 20% of the €672.5 billion Recovery and Resilience Facility to digital transition. Investment programmes such as the research and innovation-centred Horizon Europe and infrastructure-centred Connecting Europe Facility allocate substantial amounts for digital advancements as well.
While the general EU policy is to endorse digital goals through all programmes, some investment programmes and new rules specifically aim to achieve them.
Digital Europe programme
MEPs are set to vote in April on the Digital Europe programme, the EU’s first financial instrument focused specifically on bringing technology to businesses and people. It aims to invest in digital infrastructure so that strategic technologies can help boost Europe’s competitiveness and green transition, as well as ensure technological sovereignty. It will invest €7.5 billion in five areas: supercomputing (€2.2 billion), artificial intelligence (€2 billion), cybersecurity (€1.6 billion), advanced digital skills (€577 million), and ensuring a wide use of digital technologies across the economy and society (€1 billion).
Online safety and platform economy
Online platforms are an important part of the economy and people's lives. They present significant opportunities as marketplaces and are important communication channels. However, there also pose significant challenges.
The EU is working on new digital services legislation, aiming to foster competitiveness, innovation and growth, while boosting online security, tackling illegal content, and ensuring the protection of free speech, press freedom and democracy.
Among measures to ensure safety online, the Parliament is voting on new rules to prevent the dissemination of terrorist content online in April. MEPs are also considering rules on a new European cybersecurity centre.
Artificial intelligence and data strategy
Artificial intelligence (AI) could benefit people by imroving health care, making cars safer and enabling tailored services. It can improve production processes and bring a competitive advantage to European businesses, including in sectors where EU companies already enjoy strong positions, such as the green and circular economy, machinery, farming and tourism.
To ensure Europe makes the most of AI's potential, MEPs have accentuated the need for human-centric AI legislation, aimed at establishing a framework that will be trustworthy, can implement ethical standards, support jobs, help build competitive “AI made in Europe” and influence global standards. The Commission presented its proposal for AI regulation on 21 April 2021.
Read more on how MEPs want to regulate artificial intelligence.
The success of AI development in Europe ilargely depends on a successful European data strategy. Parliament has stressed the potential of industrial and public data for EU companies and researchers and called for European data spaces, big data infrastructure and legislation that will contribute to trustworthiness.
Digital skills and education
The Covid-19 pandemic has demonstrated how important digital skills are for work and interactions, but has also accentuated the digital skills gap and the need to increase digital education. The Parliament wants the European skills agenda to ensure people and businesses can take full advantage of technological advancements.
42% of EU citizens lack basic digital skill
Other interesting articles to check out
- Legislation to reduce E-waste
- New rules to facilitate crowdfunding
- All digital legislative procedures in the pipeline
More on Europe's digital policies
Vega: Launch of the first world-class supercomputer in the EU
The European Commission, together with the European High-Performance Computing Joint Undertaking and the government of Slovenia has inaugurated the operation of the Vega Supercomputer at a high-level ceremony in Maribor, Slovenia. This marks the launch of a first EU supercomputer procured jointly with EU and member state funds, with a joint investment of €17.2 million.
A Europe Fit for the Digital Age Executive Vice President Margrethe Vestager said:“We are celebrating today the launch of the Vega supercomputer – the first of several. Supercomputing will open new doors for European SMEs to compete in tomorrow's high tech economy. Even more importantly, by supporting artificial intelligence to identify the molecules for breakthrough drug treatments, by tracking infections for COVID and other diseases, European supercomputing can help save lives.”
Executive Vice President Vestager participated in the launch ceremony on 20 April together with the Prime Minister of Slovenia, Janez Janša. The new Vega supercomputer is capable of 6.9 Petaflops of computer power and will support the development of applications in many domains, such as machine learning, artificial intelligence, and high-performance data analytics. It will help European researchers and industry to make significant advances in bio-engineering, weather forecasting, the fight against climate change, personalised medicine, as well as in the discovery of new materials and drugs that will benefit EU citizens. The EuroHPC Joint Undertaking pools European and national resources to procure and deploy world-class supercomputers and technologies.
In addition to Vega in Slovenia, EuroHPC supercomputers have been acquired and are being installed in the following centres: Sofia Tech Park in Bulgaria, IT4Innovations National Supercomputing Center in Czechia, CINECA in Italy, LuxProvide in Luxembourg, Minho Advanced Computing Center in Portugal, and CSC – IT Center for Science in Finland. Moreover, a Commission proposal for a new Regulation for the EuroHPC Joint Undertaking, presented in September 2020, aims to enable a further investment of €8 billion in the next generation of supercomputers, including emerging technologies such as quantum computers. More information will be available in this press release by the EuroHPC Joint Undertaking.
Commission approves acquisition of certain Suez waste management companies by the Schwarz Group, subject to conditions
The European Commission has approved, under the EU Merger Regulation, the acquisition of certain Suez waste management companies in Germany, Luxembourg, the Netherlands and Poland, by the Schwarz Group. The approval is conditional on the divestiture of Suez's lightweight packaging (LWP) sorting business in the Netherlands.
Executive Vice President Margrethe Vestager, in charge of competition policy, said: “Competitive markets at every level of the recycling chain are a crucial contribution to a more circular economy and essential to achieve the objectives of the Green Deal. With the divestment of Suez' sorting plant in the Netherlands, the acquisition can go ahead while preserving effective competition in the sorting of plastic waste market in the Netherlands.”
Both the Schwarz Group and the Suez waste management companies concerned are active across the waste management chain in several countries. In particular, the two companies are leaders in the sorting of lightweight packaging originating in the Netherlands.
The Commission's investigation
The Commission had concerns that the proposed acquisition, as originally notified, would have significantly reduced the level of competition in the market for the sorting of LWP in the Netherlands.
In particular, the Commission's investigation found that the merged entity would become by far the largest market player, owning more than half of the capacity for LWP sorting in the Netherlands, and an unavoidable trading partner to Dutch customers.
The Commission found that competitors located outside of the Netherlands exert a weaker competitive constraint, as customers prefer for waste to be sorted as close to the collection point as possible in order to minimise the financial cost and CO2 emissions associated with road transport.
The proposed remedies
To address the Commission's competition concerns, the Schwarz Group offered to divest the entirety of Suez's LWP sorting business in the Netherlands, including Suez's LWP sorting plant in Rotterdam and all assets necessary for its operation.
These commitments fully remove the overlap between the Schwarz Group and the Suez waste management companies concerned for the sorting of LWP in the Netherlands.
The Commission therefore concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.
Companies and products
The Schwarz Group, based in Germany, is active in food retailing in over 30 countries through its retail chains Lidl and Kaufland. It also operates as an integrated service provider in the field of waste management through its PreZero business division.
The Suez waste management companies concerned, subsidiaries of the French Suez group, are active in the collection, sorting, treatment, recycling and disposal of household and commercial waste in Germany, Luxembourg, the Netherlands and Poland.
Merger control rules and procedures
The transaction was notified to the Commission on 19 February 2021.
The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II). This deadline is extended to 35 working days in cases where remedies are submitted by the parties, such as in this case.
Immigration4 days ago
Asylum and migration in the EU: Facts and figures
EU4 days ago
EU-India: Boosting co-operation from trade to climate
coronavirus4 days ago
Merkel says lockdowns and curfews vital to break Germany's third wave
Alcohol4 days ago
Trends in alcohol consumption in Europe continue their positive course
EU4 days ago
EU and UK step up N. Ireland talks as EU continues legal action
European Green Deal3 days ago
Green taxation: Join today's online event with Executive Vice President Timmermans and Commissioner Gentiloni
EU3 days ago
Conference on the Future of Europe: Make your voice heard
coronavirus4 days ago
Europe must back Biden to lift vaccine patents, says Mary Robinson