EU Blockchain Initiatives, Converging tech & data Peteris Zilgalvis, Head of Unit Digital Innovation and Blockchain Digital Single Market – DG CONNECT European Commission

AN AMBITIOUS EU BLOCKCHAIN STRATEGY EU Strategy Blockchain holistic approach ESTABLISHING GLOBAL LEADERSHIP IN BLOCKCHAIN AND DISTRIBUTED LEDGER TECHNOLOGIES JOINED-UP POLITICAL VISION (EU-MS) JOINT DECLARATION ON THE ESTABLISHMENT OF THE EUROPEAN BLOCKCHAIN PARTNERSHIP [EBP] AND THE DEVELOPMENT OF THE EUROPEAN BLOCKCHAIN SERVICES INFRASTRUCTURE [EBSI] FOR CROSS-BORDER DIGITAL SERVICES OF PUBLIC INTEREST PUBLIC-PRIVATE PARTNERSHIP SUPPORTING THE CREATION OF THE INTERNATIONAL ASSOCIATION OF TRUSTED BLOCKCHAIN APPLICATIONS [INATBA]; A MULTISTAKEHOLDER ORGANISATION TO PROMOTE TRUST AND INTEROPERABILITY AT GLOBAL LEVEL CONNECTING GLOBAL and EUROPEAN EXPERTISE THE EU BLOCKCHAIN OBSERVATORY AND FORUM BRINGS TOGETHER THE LEADING GLOBAL EXPERTS TO IDENTIFY OBSTACLES, INCENTIVES AND PRACTICAL SOLUTIONS TO PROMOTE BLOCKCHAIN UPTAKE. INVESTING IN EU RESEARCH, INNOVATION AND START-UPS THROUGH THE CONNECTING EUROPE FACILITY AND H2020 PROGRAMMES, THE EU IS CO-INVESTING IN THE MOST ADVANCED DIGITAL INFRASTRUCTURE AND THE MOST INNOVATIVE EU START-UPS NEW EU INVESTMENT SCHEME FOR AI AND BLOCKCHAIN + SUPPORT PROGRAMME PROMOTING AN ENABLING DSM LEGAL FRAMEWORK, INTEROPERABLE STANDARDS and SKILLS DEVELOPMENT

Why AI & Blockchain? Foundational technologies that will underpin the future of digital transformation across whole economy deep-tech at a stage of development where volumes of investments make a difference embedding values of society Leadership role of Europe The EU has leading research, knowledge and talents High AI and Blockchain standards (data/privacy protection; ethical guidelines and cybersecurity) Engine for innovation-led economic growth Role for public bodies and the private sector AI declaration joined by all 28 Member States and Norway Blockchain declaration with 28 Member States, Norway and Lichtenstein

AI/Blockchain Investment Fund Investments in AI/Blockchain “made in Europe” Investment for start-ups, early and growth stages EUR 100 million (EU contribution in 2020) With ambitious objectives: Financing a portfolio of innovative AI/blockchain companies Developing a dynamic EU-wide investors community focusing on AI Scaling up the volume of investments at the national level by involving the national promotional banks (NPBs) that are willing to participate Incentivising further private sector investments making Europe become more attractive for start-ups to stay and grow Prepare future support through InvestEU Programme (starting in 2021)

AI/Blockchain Investment Fund Target: 1) SME & startups, for latest technology development as well as applications adopting and scaling up AI/BT 2) AI and/or BT element is core for offering solutions 3) strong EU technology investor community (advice, networking, management support, …) Stage: early stage and growth stage Instrument: existing instrument program managed by EIF (InnovFin Equity Facility – ESFI SME Window) Total Volume: EUR 300m- leverage EU investments through financial intermediaries (funds investing in AI & blockchain) Possible co-investments by Member States (MS) A priority action for MS under the Coordinated Plan on AI More specifically: InnovFin Equity Facility for Early Stage - EFSI SMEW equity product for leading AI and BT technology development to adopt AI and BT in their products, services, businesses early and growth stages pilot of 100M ahead of InvestEU

Investment Support Program Enabling AI/Blockchain Ecosystems Rapid Market Assessment/ Market Consultations : identify key investment gaps and geographic prirorities Awareness Raising and Community-Building by connecting innovators with investors Knowledge Sharing through a Massive Open Online Course (MOOC) on digital innovations Matchmaking between AI/blockchain startups and finance community Portfolio development of investment ready projects Investment Portal virtual marketplace for AI/blockchain innovators, researchers, the VC community and investors

More info: https://www. openaccessgovernment

EU Blockchain Observatory and Forum Achievements Ten Blockchain and Governance Digital Assets Prepared by ConsenSys for the EU Blockchain Observatory and Forum

BlockchainS compatibility with GDPR “GDPR compliance is not about the technology, it is about how the technology is used. Just like there is no GDPR-compliant Internet, or GDPR-compliant artificial intelligence algorithm, there is no such thing as a GDPR-compliant blockchain technology. There are only GDPR-compliant use cases and applications.”

Evolution from above: the GDPR Focus on GDPR Evolution from above: the GDPR Roles Data subject Data controller Data processor Principles Lawfulness, fairness and transparency Purpose limitation Data minimization Accuracy Storage limitation Integrity and confidentiality Rights Rectification Erasure Access Related to automated processing Obligations Lawfulness Data protection by default and design Security of personal data Territoriality Governance – DPO, DPIA Personal Data: ‘any information relating to an identified or identifiable natural person’.

Practical tips Four rule-of-thumb principles to consider when designing blockchain-based applications Start with the big picture: how user value is created, how is data used, and what is blockchain really used for. Avoid storing personal data on a blockchain. Make full use of data obfuscation, encryption and aggregation techniques in order to anonymise data. Collect personal data off-chain or, if the blockchain can’t be avoided, on private permissioned blockchain networks. Consider personal data carefully when connecting private blockchains with public ones. Continue to innovate, and be as clear and transparent as possible with users. 11

(regulation, technologies, society and new business models) Convergence INATBA Congress The Global Blockchain Congress - Málaga, Spain 11–13 November Programme to be released – tickets available! https://www.blockchainconvergence.com/ An event all about Convergence (regulation, technologies, society and new business models)

Thank you! peteris.zilgalvis@ec.europa.eu @EUBlockchain @PZilgalvis