Blockchain: Facing the future

It is difficult as a lawmaker not to be interested by the potential that Blockchain and Distributed Ledger Technology offer in general.

Igot into politics because the status quo was never enough, because politics is still the leading force of change in this world. Advances in technology mean change is happening at a pace faster than at any other point in world history.

Change has never been easy. Drastic shifts in the often misunderstood technological and financial worlds naturally raise concerns. These questions must be addressed openly and publicly.

With every technological breakthrough similar patterns emerged: people’s habits shifted, abuse was tackled and legislation came into force, providing parameters that allowed technology to continue to grow and give confidence to the process in front of an eversceptical public.

Blockchain is a revolutionary element in the current digital transformation of the global economy we are experiencing. Its potential is enormous, with uses in finance, healthcare, banking, logistics and transport poised to transform established industries and change how business is conducted across the board.

Just this week we saw how a US company was able to har- ness Blockchain technology to provide traceability - with certainty - of every step of the chain before a beefsteak was placed on a plate in front of customers in a restaurant. So before ordering, consumers knew exactly where and how the meal in front of them came about. It is a small practical example of just how valuable the technology is.

For me, as a legislator in the European Parliament, the principle underlying Blockchain, FinTech, Artificial Intelligence and more is: how do we harness all their potential while strengthening legal safeguards and allaying people’s fears.

These are more than just buzzwords, the landscape is changing complexly and completely, but more needs to be done to engage with a naturally uncertain public, address concerns and increase trust.

In order for Blockchain to fully reach its potential in industry, there must be a concerted effort to better show a distinction between technology and cryptocurrencies that use technology as a base.

Law enforcement concerns with cryptocurrencies are well documented. These concerns must be addressed before it is publically accepted.

This is where, in tangible terms, reputation matters – and this is particularly true for Malta and Gozo. We need to ensure that money-laundering concerns are addressed and that this new, misunderstood, technology is not allowed to create new dark-nets of anonymity to allow new places for criminals to hide ill-gotten wealth.

Reputation matters to companies, to bona fide investors, and to their bottom line. It is too important for a few rogue operators, or a few rogue politicians, to endanger. Industry must lead in demanding accountability.

Within the European Parliament, I have been involved in a report that will hopefully feed into the European Union’s general policy on Blockchain and DLT as it is developed.

We make a distinction between cryptocurrencies and the Blockchain technology that underwrites it. They are not one and the same, but we must ensure that the European regulatory and institutional ecosystem that exists is sufficiently adaptable and robust to be able to embrace these new models while ensuring that this is balanced with all the necessary safeguards to prevent abuse of the system if we are to build public confidence in the process.

Malta and Gozo have always had to put innovation at the forefront of their economic policy. We have harnessed emerging technologies to create new spheres of economic growth, we got it right with maritime, aviation, gaming and of course financial services. We grew because we realised the potential that these sectors had to offer and we used our size to our advantage to move quickly and expertly.

I want us to again be ready to understand and reap all the benefits that Blockchain has to offer.

We can create an island home for tech innovation, invention, and a safe space for new industries to develop. But to do that we have to match the enthusiasm this tech generates with massive public investment in technological infrastructure in both Malta and Gozo and the regulatory ambition and safeguards we need for this sector to grow.

Without robust government investment in our digital infrastructure coupled with a comprehensive public awareness campaign, we will not get to where we need to be in time.

Roberta Metsola Roberta Metsola is a Nationalist Party Member of European Parliament and a candidate in the forthcoming EP elections