The European Banking Authority (EBA) has published a report, which analyzes the opportunities and risks emerging for financial institutions in using distributed ledger technology (DLT).
The report says that DLT and smart contracts provide a range of opportunities, the most promising of which are the potential efficiency gains, conservative management of costs, and lower risk of duplicate financing and manipulation of documents.
It explains: “DLT enables a common and almost real-time view of a trade transaction stored in a shared ledger for all participants involved, creating a level playing field for all parties and eliminating their reliance on paper instruments exchanged among them.
Similar to the report from the EBA, CEO Carlos Torres expressed concerns over possible compatibility issues with tax authorities and financial regulators in various jurisdictions.
Torres added that, despite its challenges, the technology deserves thorough exploration.
A European regulator has released a report on DLT usage in the financial sector, stating that the technology still struggles with legal uncertainty and poses a number of risks
The new platform, called the “Ethereum time machine,” extends Ethereum’s programming capabilities by allowing smart contracts to execute transactions based on uncertain or not-guaranteed future events.
Cardano, known for its innovative blockchain platform, has been experiencing a remarkable surge in smart contracts, particularly within the Plutus V2 framework.
The "Protocol 20" upgrade, which adds support for Ethereum-style smart contracts to the decade-old payments-focused blockchain, had been delayed by three weeks due to precautions after a bug was found.
The European Parliament said on Nov. 9 that it has voted in favor of a Data Act that will set out rules in various areas, including smart contract development. The current announcement says that the act has been adopted with 481 votes in favor and 31 votes against, with 71 abstaining votes.
