European Blockchain Sandbox kicks off with 20 use cases [Advance Cash ]


The European Blockchain Sandbox has announced its first cohort of 20 projects exploring the use of blockchain technology in the region.

Selected projects will receive regulatory and compliance advice from a cross-section of European Union regulators based on their industries. The projects cut across multiple sectors, with transportation, culture, food, education, manufacturing, finance, and telecommunications making up the bulk of the use cases.

Use cases are evenly distributed across the region, with Western Europe hosting 14 projects while Central Europe and the Nordics have eight use cases. Eastern Europe and Southern Europe have ten and seven projects respectively, following a rigorous selection process.

Over 90 companies expressed interest in participating in the Sandbox, but only 20 projects were chosen to join the inaugural cohort. Companies that met the selection criteria but failed to make the final cut "have the option of being waitlisted" and will be allowed to apply to future cohorts.

The European Blockchain Sandbox will run three cohorts, supporting 20 initiatives in each iteration, with the second and third scheduled for 2024 and 2025, respectively. Successful use cases will be paired with regulators to begin "confidential dialogues" about operating within the boundaries of existing regulations.

"The sandbox will enable supervisors to enhance their knowledge of advanced technologies involving DLT (Distributed Ledger Technology)," the report read. "Lessons learned will be shared among participating regulators, helping the European Commission to identify best practices."

The sandbox will share its progress with the EU's Digital Financial Platform and the Artificial Intelligence (AI) Sandbox as part of upcoming legislation. Experts note that collaboration will play an important role in the face of the "increasing convergence of innovative technologies" in use cases.

At the end of each year, a prize will be awarded to the regulator judged to be the most innovative under the management of the law firm Bird & Bird.

Blockchain in the EU

Since its debut in 2009, blockchain adoption in the EU has been the highest, with use cases spanning multiple industries. Administrators in the region are also leveraging technology to improve processes, with the region leveraging blockchain for a retail central bank digital currency (CBDC).

EU banks are also considering the possibility of using blockchain for interbank settlements via depository tokens and other digital assets.

Aware of the risks of using blockchain in financial markets, the EU launched its Crypto Asset Markets Act (MiCA) to regulate players in the sector.

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