It Is Time for Ethereum in Europe: Launch of the European Ethereum Institute

Transcript

Great. Hi everyone. Thank you for joining this presentation. My name is Marina and I am coming from the European Ethereum Institute. So, why are we here? There's a lot of people on the stage you see here. This is the amount of people and even more that is needed in order to work efficiently on the regulatory topics, advocacy topics in Brussels and in the UK as well. So, we have quite a big team. We have a lot of people on the stage that will tell a little bit more about what is happening, what was happening in the past and what we plan for the future. But, let us start from the beginning. So, what are

we doing here today is announcing a rebranding, a completely new organization that we are starting from right now. So, you will see the new website, new social media and we have also a new team members. What the announcement will be about is about the new European Ethereum Institute, but I would want to start with Europe. So, we are working in Europe as an organization. You probably might know us as the European Crypto Initiative. We have been active in this space for the last 6 years doing a lot of stuff. We'll say we'll talk about it a little bit more later. But, the really important part is we want to make and create a better future for Europe. What

is happening in the European Union right now and in Europe in general is that there is a lot of focus on sovereignty, reshuffling, rethinking about what sovereignty is, how to create a more sovereign Europe and how to create a more resilient Europe. What Europe usually does when it comes to questions like this is think about regulations. Can we create new regulations that could sharpen and you know, basically help us understand how to create a more resilience continent? So, we have looked into a lot of different topics, infrastructure. We have looked into cybersecurity resiliency. There's a lot of new rules that have been proposed by the European

Commission in the last year. As you have heard probably, the European Commission started a completely new mandate last year and it was important time to basically discuss what the priorities are. Sovereignty was definitely one of them. But, we do think as an organization that we need more than just laws. We also need tech and we need other frameworks that will help us become sovereign to all levels. We do need open verifiable tech. We need something that is really basically independent of geolocation dependencies and something that can help us with rule setting and very resilient governance. We basically do need crops.

You have probably heard about the new mandate from the Ethereum Foundation, which is defining what crops are, censorship resistant, open source and freedom, privacy, security. So, this is something that we do think Europe needs more of and that's why we have launched the European Ethereum Institute, which is again a rebranding of the organization that we have worked on before, but it's much more. We would like to present and basically showcase what Ethereum and the whole Ethereum ecosystem can do for Europe. We would like to promote, of course, laws, but at the same time different technologies and structures that can help Europe become more resilient.

Here we have today something that is basically aligning with what we think the future will be. Um aligning with the new mission and the new uh the new name, but I think it's much more focused of what we have done for the last 6 years. And I would like to maybe invite Josef now at this moment to tell us a little bit more about how the vision of the institute will be. Uh Josef is one of the new team members. It's a new board member that just joined our institute and will bring a lot of I would say new fresh perspectives. And he calls himself the the chief Ethereum uh vibes officer. No, there was there was originally a joke, but I guess I'll just

go with that. Uh hey, uh my name is Josef. Um so, as I said, I'm joining as a as a board member and um I've been in crypto for for the past decade. Uh I spent several years at uh EF uh Ethereum Foundation at times where like the word policy or regulators was a curse word. Like EF would never like start talking about like any any regulators, we would just focus on the tech. Uh that was a clear clear mission. And it's not in my view like changing really, but um the the news is that um um EF is also like willing to support other initiatives and uh I'm like grateful to UCI and like the work that I I've been doing over the the past uh several years. Um at the same

time I personally think it's it's about time to take a concrete stance and um kind of even like stop hiding behind um like vague terms and and blockchains and crypto as as like a overarching topic. Um because from from my view uh as a as a developer, as a person building in the space, uh there literally is is the one credibly neutral, sufficiently decentralized chain, and that's Ethereum. Uh forget ETH. Forget cryptocurrency. Uh just look at the technological stack.

Just look at um like EVM compatibility and um and the tools that are being built around it and the uh amount of developers and even in fact that like even on the EU level in my view EU has already picked Ethereum. There is Absy which is essentially a fork of Besu an EVM EVM compatible client and uh to me the the kind of refocus of an existing and long-standing policy initiative to like a narrow focused Ethereum advocacy group kind of comes from from just this realization of like we we don't have to we don't have to talk about like blockchains vaguely.

There there already is the golden standard of this neutral distributed ledger that's Ethereum. So, let's just recognize it for what it is. Um and there are obviously multiple subjects that are hidden under the Ethereum stack which are privacy-preserving technologies which are um um consensus mechanisms execution layers and like all the tooling. So, we're not again, we're not just talking about like layer one ETH and that's the focus and like we're going to shill ETH but we are here to make people realize that there is a there is this vast technological stack which is um becoming more and more more strategic infrastructure. And

what I would like not only like regulators but also the the institutions and like the the wide public to to realize is that we are I mean we've been talking about the comparisons between the web, the internet, and Ethereum and crypto for a long time. Um and we're also aware that like most of the most of the like business side of using the internet technologies is actually happening in the US. Like the the EU can maybe like tax and like fine the the big corps but the fact is like they're in the US. Like we have we have we have like very little say even though a lot of the technologies were actually created in Europe. Let's not make the same mistake.

Let's Let's actually realize what we're looking at right now and let's open up the ways and let let let's help the regulators to understand we're actually in this day and age where we have the option to support creation of uh the the new like internet paradigm the new web paradigm here in Europe and let's just embrace it. Let's Let's make sure not to repeat the same mistake of having everyone leave. And that's that's kind of I mean, it's as a sharp mission. I've been mumbling here for 5 minutes about all of this, but I I I I think you get the point.

Thank you, Josef. So, with us we also have the older board members that are also within the Ethereum ecosystem active for really, really long time. Um it's going for us a little bit back into how did we discuss this this how do did we start with EUCI actually and what have we done in the past? But also basically starting personally in the Ethereum ecosystem for such a long time, what do you see the future? How do you see this past in the future strategy connecting? Maybe I can start with Simon and then we go into with Florian.

Yeah, maybe let's be So, hello, it's Simon. Um let's be a a bit uh going to the origin story to better understand what we actually doing, right? Because the the the methods what we'll be doing is quite similar. It's just a refocus and also opening a new grounds but we've been uh very all the the board members have been very uh involved in the space for the last 10 years and in 2020 um Europe created this uh draft for MiCA regulation. Um and this is where we all gathered together and we're like, "Okay, we have to react to that." Um this is like a something all-encompassing. All the crypto will be captured. Um everything will be treated as the same thing and we need to make

sure that there is some form of granularity. DeFi is considered NFTs, you know, all the subjects that we were actually dealing with. So, this was really a reaction. Like, Europe is coming, regulation is coming. How does the industry react to this? And how does the value How can we use the values and explain the values that we are working for and and make sure that the regulation will be in line with those stuff. So, this is basically the mission that we still have today.

And this is So, we had a we had a lot of works going on all the different regulations that happened since 2020. We had actually a few big wins. And the carving out of DeFi from MiCA is especially thanks to our work. And the kind the kind of stuff that actually helps Europe to be more in line with what crypto is today. So, we're really happy to continue this this this mission being really focused on the actual credible natural network that we believe in, which is, of course, Ethereum.

Maybe I can give the floor now to Florian with a similar story about how it started, but maybe focus a little bit more also on Ethereum and, you know, how how the whole Yeah, you see I was aligned with Ethereum. What I really love about this new focus that we're now adopting with the EEI going from EUCI to EEI is, I think, making ourselves honest that we really are, I think, Ethereum people at heart and always have been. And I think when we started EUCI, it was in 2020, the mandate was to protect all of crypto from sort of an undifferentiated view by the regulator of what crypto is,

that it's all sort of ICO scams or something like that. And we had to go in there and teach them about well, there's actually decentralized finance, which is a paradigm that will, you know, uplift millions of people who are unbanked or who are, you know, not not accessing finance the right way. And I think now 6 years later, um what um you know, to recur to what Joseph has been saying is that well, there is really one blockchain that is different than all other chains out there and it's Ethereum because it has a level of um you know, uh credibility, neutrality decentralization um and you know, these crops uh properties that are now part of this new EF mandate um that really make uh Ethereum different. And um it is a

European project. Um it was the network was launched from Berlin back in uh 2016. Um it was a um you know, it's uh actually was it No, 2015. Yeah. Uh sorry about that. And um uh it has in many ways a sort of uh European set of values, I would say. And so, uh you know, when we started with UCI, we were fighting for all blockchains, but I think now it's time to actually uh make ourselves honest and say well, we're really fighting for what Ethereum stands for.

And um I think it really aligns perfectly with our history, with our own values, uh with our own journey in the space, um and yeah, I think it's it's the right time and I'm grateful to Joseph uh to sort of bring that uh impetus uh into uh into our work now. So, that's pretty awesome. Thank you, Florian. So, um going forward, what you know, besides the discussions around what uh what we have done in the past, here you have you can see some of the regulations that we were discussing in the past, but are being also reopened right now. There's a lot of things that we are currently

working on and are I would say pretty important for everyone here for the whole ecosystem. Over the years, even the reopening of some of those rules went to direction that our organization and other similar organizations, but specifically for us it was important that for example, the data act was acknowledging the reality of how smart contracts work in the Ethereum ecosystem and how they are defined. There are a few other things that you might have not heard of because we mostly really were talk about Mika or some other some other topics, but there's a lot of regulation that is really aligned and that is regulating tech as well. It's not only the crypto assets, but tech itself. And it is becoming more and more prominent, I

would say specifically with the discussions around tokenization. So, as a mission of our institute, we're going to continue working on those topics and they're going to be even more important in the next years. I would say and and I would think I'm not really exaggerating, but the next few months are going to be crucial within the European Union and also in the in the UK on most of the things that we're building here today. So, understanding regulation is another topic and we do have basically as we said a lot of understanding around that. We I will not bore you with details. You can always come back and ask about what's happening, what are the latest updates.

I know you have heard a lot of presentations today here in this in this room, but one of the most interesting ones and I would say a little bit alarming, I would just mention, is the publication from the European Central Bank on DeFi Dows and decentralization that happened basically 10 10 days ago and the outcome is not very positive, I would say. So, I think that our organization is really needed to create framework to basically discuss with institutions about the topics that we care about.

So, this is a part of the mission. Uh the announcements I will continue with the announcements is that EUCI until now only worked within the European Union, but now the new EEI will work in the UK as well. So, we will be active in the EU and in the UK. Uh as you have heard probably there's a lot of things happening in the UK as well. There is a stablecoin regulation. There is crypto assets regulation uh very actively discussing important things that we have already mostly covered in the EU. So, we do think it's a really right moment to start working in the uh in the UK as well.

And uh one of the, you know, announcements we're really, really proud of and really happy to basically share with you is that uh Andrej Kovačič, the the former MEP, is joining us as a senior advisor to our organization as well. We do have the privilege now to work with him. Uh and he's here with us today on the stage. Uh I would also like to invite you to say a few words for the end of this presentation. Thank you again for for joining us and to be part of our team. Thank you, Marina. Thanks. Um good afternoon, everybody. Well, thanks to all of you uh for taking me on board. Um I'm I'm also I was I was a former regulator as a member of European Parliament. Um I started dealing with

crypto when regulator was a curse word uh in the community and then then which I realized quite quite quickly uh but then I think uh one of the my approach as a regulator and this is also what I want to would like to bring to this job is actually creating a culture and platform for cooperation and understanding on on both sides. I don't think we won't be able to actually succeed in general if there is if there are gaps uh between on one hand the industry and the other hand the regulator supervisors you you you name it. And I think it uh what I really like also about the idea of European Ethereum Institute apart all things that they've already said I can only agree to, is actually that this is actually a specific entity

speaking obviously under under regulation, very important part of it, but I think also contributing contributing to larger policy making. We can actually have a policy even without a regulation, but just you know, giving a clear direction, a strategy how to achieve goals, helping innovation in this regard in Europe. And I think this is something where where we also need to be more present and and put more effort into it. And I think last but not least, and this is also something that I take from the the policy making environment, there is actually on on that side of table very often a very low level of awareness and knowledge of how things

are functioning and actually very difficult to keep the pace. The pace of development in the in the in the industry is extremely fast. And I think again, creating this culture of cooperation and discussion will actually help to understand on both sides where where where where we stand. And I think bringing on behalf of the institute additional research, data, understanding, provided best practices, examples. I think this this is also what what can help to shape the debate in Europe the way we would like to see it.

So thanks, looking forward to to joint work. And thanks for bringing me in. Awesome. So one one last thing, I also want to thank to the people who enabled the creation of the institute. So I would like to thank to Mihai Alisie of Akasha who not only supported the the effort financially but also provided the domain name ethereum.institute. So you will start finding us under the new domain domain name as well. Then Gnosis is one of the one of the companies and groups that were very Ethereum aligned and building a lot of the a lot of the tech stacks that the entire ecosystem is using.

And last but not least, of course the Ethereum Foundation for supporting the mission and actually being game to open up itself to these like regulatory subjects and supporting the groups such as UCI and now the institute. We did have some of the members as well from the past like Lido and we work with IDOS networks and of course all the past members that might not be members anymore but we're very excited for the new family in way of members that we work with. This presentation for us is basically a celebration so thank you for being with us here. I would also like to invite the team members Anya and Viara who were with us for a really really long time over the years on the stage

please as well. Do do a celebration together and to take a photo together. This is the team that stayed with us in the good and in the bad times. Believe me there were a lot of ups and downs. We were I think if I can say something we were basically a very resilient organization to work with in the last six years and continue with the new story. So I'm very grateful for everyone especially for the team and everyone helping us and supporting us. There's so much support that we have gathered from people there in the room. It can be financial, invitations to events, just

words of support and it is it is has paid off. So thank you so much and thank you for coming to this presentation. Yay. Okay. We have We're out of time, so the organizer should say. Do we have a few time 2 minutes for questions? 2 minutes, great. Thank you for the talk. I would like to ask the EII, what are your thoughts about the European digital identity wallet? How do

you think it can be used in Ethereum correctly? And what regulatory impacts will this have in the future of Europe and Ethereum? I would give the answer to Anya Viera. Yeah, we're here for the content. Uh but Yeah. Uh but they look better on stage. So, uh yeah, that's a great question and basically, the identity element is one of the key elements also for us when it comes to the use potential future use of Ethereum as well and public permissionless blockchain. So, for us Ethereum has never been just about the financial use cases. So, what is going

on currently, especially in the European Central Bank and the discussions around tokenization is amazing, but that's just the top of the iceberg of what Ethereum can be further used to to achieve. So, identity, definitely qualified ledgers, and all those things are in our road map as well. But we do have to say that the recent uh basically discussions around that and the definition of qualified ledgers is not going really into the direction where it could be open to permissionless blockchain. So, I think there's like a lot of discussions there um and unfortunately, some of the documentation is already finalized and not sure it will be changed soon, but I think we

need to be focusing on that uh topic for sure. Um but also like part of the part of the work will be getting the the right groups together and definitely like people working with the affiliated stack working on things like DIDs, uh working on uh other identity systems using zero-knowledge proofs, uh and so on are welcomed. Um and um uh yeah, but there definitely we will be times when we'll um you know, like we we don't we don't know everything. So, part of a job is just like collecting the right minds in the right room and just making sure that uh we we stay to be aligned with the mindset of like open source innovation that um you know, does doesn't introduce unnecessary intermediaries in the system.

Great news. I love it. Thanks for this announcement. It's great. Um I have one question. Um do you also plan to work with the governments of the member states or only EU and Brussels? Yeah, I think we will work with the governments of the member states as much as it is possible within the capacity that we have, but I think it is a very important topic as you mentioned even within the discussions uh with negotiations within the council, but then of course um as you know, some of the topics are not regulated uh on the EU level, but on the member state level. So, thinking about you know, discussing with 27 different member states plus three in the European Economic Area could be a lot, but uh I think some of the topics are as

important as uh you know, as needing to focus on that. Maybe just to add on top of that, um bringing me back to 2020 when the EUCI was created, it was actually Florian, Simon, and Marina coming from the national organizations that serve as a think tank. So, those think tanks are already in talks with the national organizations. We now have the Czech Republic also represented sort of um Slovenian is also, Bulgarian also. So, that also had a calls um monthly calls basically with all the representative organizations from the nation states and we are about to bring that up again. So hopefully yes, there's going to be more and more talks with the local regulators.

You had a question? Okay, great. I think we're at the time. Thank you again. Thanks. Good.