European Lawmakers Promote Kill Switch For Smart Contracts Act

Key Points:

• EU lawmakers are advancing the controversial European Data Act, despite crypto community protests.
• The inclusion of a kill switch option for smart contracts has sparked concerns among decentralized finance advocates.
• The European Commission is developing the digital euro, prioritizing privacy protection and accessibility, including offline payments.

Despite protests from the crypto community, European Union (EU) lawmakers have made substantial progress in enacting the contentious European Data Act.

The legislation is intended to encourage the use of data resources for algorithm training, however, the inclusion of a kill switch option for smart contracts has raised worries among proponents of decentralized finance.

The planned amendment to the EU’s smart contract laws, which includes the kill switch option, calls into question the core idea of trust inside smart contracts.

The capacity to cancel smart contracts, according to critics, defies the entire basis of their self-executing and immutable character. The crypto community pushes for smart contract integrity and reliability, emphasizing the need for safe and transparent transactions.

At the same time, the European Commission developed a legislative strategy for the digital euro, with the objective of making it a widely recognized and readily accessible payment mechanism.

Individuals will be able to get digital euros via their banks upon request, enabling quick access and avoiding exclusion, according to the idea.

In addition, the proposal includes provisions for free basic digital euro services, privacy protection, and offline payments. The digital euro plan prioritizes privacy protection. The European Commission understands the need to protect people’s personal data and financial information. The plan contains stringent privacy safeguards to protect users’ sensitive data, creating trust and confidence in the digital currency ecosystem.

Notwithstanding these trends, the European crypto environment has some encouraging news, especially at the municipal level. For example, the National Council of Slovakia introduced an amendment to lower personal income tax on gains from the sale of cryptocurrencies held for at least one year.

Additionally, the proposal recognizes the necessity for offline payments, stating that smooth transactions should be possible even when internet access is restricted or absent. This characteristic enables the digital euro’s practicability and usage in a variety of contexts, adapting to people’s unique requirements and circumstances.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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Harold

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