- Further, the bill will be discussed in the Council of the EU and the European Commission
- The next meeting will be held on March 28
- The initiative caused condemnation in the cryptocurrency community
- Legislators’ demands are simply impossible to meet
Yesterday, March 14, the European Parliament adopted by an overwhelming majority bill on data. It is based on the proposal to introduce an “emergency switch” into smart contracts, which contradicts their immutability principle.
500 deputies voted “for”, 23 “against”, 110 abstained. Now the proposal will move into the phase of the so-called “trilog” with the participation of the European Commission and the Council of the EU. The first meeting of the parties is scheduled for March 28.
Note that the bill “On Data” does not directly affect the cryptocurrency. But it jeopardizes the entire DeFi space as the lawmakers’ demands are ‘impossible to meet’. consider at Curve Finance.
“Smart contract providers should develop and implement a “switch” function to interrupt and reset transactions. What is this wording? This is impossible to do. Disperse them all, ”the company commented on the situation.
The immutability of transactions is one of the fundamental principles of the blockchain, and, as a result, smart contracts. Interestingly, a similar initiative took place in the Illinois State Council. She was simply ridiculed in the cryptocurrency community.
In fact, the bill “On Data” calls into question the main functionality of smart contracts. If it is accepted, it will make it impossible for service providers (VASPs) to operate normally in the EU.