The future of fintech and blockchain in Europe
XXI centurybecame the time of rapiddevelopments and arrival of a life-changinginventions. One of the most prominent brainchildsnowadaysis the financialtechnologyindustry, colloquiallynamedFintech, and itisstillgatheringsteamglobally, receivingmorethan$17.4 billion in investment. Moreover, the rapidincrease in cryptocurrenciespopularity and the importance of blockchaincan not be leftunnoticed. Financial analysts and market specialists from allaround the worldaimatpredicting the future of bothfintech and blockchain in Europe, perceivingthem as a milestone in the technological development of a modern world.
For the sake of understanding the function of fintech, itmight be useful to definethisthrivingphenomenon. Generallyspeaking, itisbroadlygrasped as anytechnologicalinnovation in financial services. As EY’sFintechAdoption Indexreveals, around a third of internationalconsumersareusingmorethan 3 fintechtechnologies and services. Whatismore, approximately 80% of intervieweesclaimthattheyarefullyaware of the existence of fintech and itsmeaning. The maingoal of the financialtechnologyindustryis to developnew services to disrupttraditional and oldfashionedfinancialmarkets.
Fintechisstronglyassociated to the rapidgrowth in strength of cryptocurrencies, beingdecentraliseddigitalcurrencyusingencryption. The aftermath of the existence of cryptocurrenciesisblockchain, meaning a form of distributedledgertechnology. In otherwords, blockchainrecordsall of the cryptocurrencytransactions on a distributed network of computers.
European Union stronglysupportssalubrious development of fintech and blockchain, aimingatimprovingitsfunctioning and fullysecuring the legal party. On the 8th of March 2018, EuropeanCommissionestablishedFintech Action Plan – a documentproposingcertainchanges and actions in order to make the financial market moreintegrated, safer and easier to access. The plan ismeant to help the industrymakeuse of a rapidadvances in technologysuch as IT applicationsor a blockchain.
EuropeanCommissionplans on introducingnew crowdfunding regulations, reinventingalreadyexistinglaws and establishingnewlegalframeworks for crypto-assets and regulatory sandboxes. Moreover, one of the most prominent goalsis to createsomelegal standard for fintech and blockchain.
The financialtechnologyindustryis the future of modern world. The vastmajority of alreadyexisting services arecurrentlybased on fintech, and thisphenomenonisgoing to be developing year by year. For sure, entrenchingfintechposition and the security of itsusersshouldbecome the mainresponsibility of authorities, financialinstitutions and European Union.