“In an almost direct clash of intentions, the GDPR has effectively banned the use of blockchain technology in Europe because of its immutable nature. The GDPR offers the power back to the individual to edit and delete data which falls into the hands of centralized authorities, but when there is no centralized authority, there is no need for data to be moved around. This is the crux of the GDPR’s clash with blockchain. So, what happens to Europe and the next technological wave?”
Darryn Pollock, columnist for Forbes.
The “blockchain” technology is a distributed ledger that allows information to be securely transferred without the need for third-party authentication, which could mean that many of the settlement and custody functions provided by banks – the sort of “plumbing” of finance we take for granted – could be done far faster, and at less cost. Although the crypto currencies that sit atop of this technology have their fair share of sceptics, the blockchain tech. is seen by banks as a potentially revolutionary one. While people complain that some London-based jobs could leave London if the UK has a clean Brexit and leaves the Customs Union (not to be confused with access to the European market as such), I would wager that blockchain will be far more important in affecting financial employment overall.
And yet the EU, with its usual plodding, bovine way, has enacted data protection rules (GDPR) that could blight this new technology, as well – as we have already seen – add layers of costs to organisations of all kinds. Coupled with the recent vote by MEPs to impose intrusive and costly controls on the internet, I’d hope that all those Millennials whom we are told are full of so much love for Brussels might wake up. This doesn’t of course mean that British politicians aren’t capable of enacting plenty of daft laws, but it’s usually a sight easier to lobby for change at a national level than try to persuade hundreds of millions of voters in 28 countries to change.
So as Tim Worstall likes to argue: can we leave yet?