The post Germany Seeks Flexible EU Rules for Combustion Engines Beyond 2035 Deadline appeared on BitcoinEthereumNews.com. German Chancellor Friedrich Merz advocates for technology-neutral CO₂ regulations in the EU to allow combustion-engine vehicles beyond the 2035 deadline, emphasizing fleet-wide emissions over new registrations alone. This approach aims to balance climate goals with industrial innovation and job preservation in Europe’s automotive sector. Merz’s letter to Ursula von der Leyen highlights flexible, realistic regulations to meet EU climate targets without stifling innovation. Germany supports EV adoption through subsidies up to €5,000 for vehicles with domestic components, amid rising industry challenges. The automotive sector has lost over 51,000 jobs this year due to weak EV demand, Chinese competition, and potential US tariffs, per industry reports. German Chancellor’s push for EU 2035 combustion engine flexibility sparks debate on balancing climate ambitions with industrial needs. Discover impacts on jobs and innovation—read expert insights now. What is the German Position on the EU’s 2035 Combustion Engine Ban? The EU’s 2035 combustion engine ban targets zero CO₂ emissions from new car registrations to combat climate change, but German Chancellor Friedrich Merz seeks amendments for technology-neutral regulations. In a letter to European Commission President Ursula von der Leyen, Merz argues for considering the entire passenger car fleet’s emissions, not just new vehicles, to foster innovation and maintain industrial strength. This stance reflects Germany’s effort to protect its vital automotive economy while advancing sustainability. How Does Germany’s Proposal Address Industry Challenges? Germany’s automotive sector, employing millions and contributing significantly to GDP, faces severe pressures from the impending ban. Merz proposes raising blending quotas for synthetic and advanced biofuels to cut emissions in existing fleets, stating there is untapped potential for reductions. Industry leaders echo this: Mercedes-Benz Chairman and CEO Ola Källenius, also president of the European Automobile Manufacturers’ Association (ACEA), warned in August that rigid enforcement could collapse the European market, with consumers stockpiling petrol and… The post Germany Seeks Flexible EU Rules for Combustion Engines Beyond 2035 Deadline appeared on BitcoinEthereumNews.com. German Chancellor Friedrich Merz advocates for technology-neutral CO₂ regulations in the EU to allow combustion-engine vehicles beyond the 2035 deadline, emphasizing fleet-wide emissions over new registrations alone. This approach aims to balance climate goals with industrial innovation and job preservation in Europe’s automotive sector. Merz’s letter to Ursula von der Leyen highlights flexible, realistic regulations to meet EU climate targets without stifling innovation. Germany supports EV adoption through subsidies up to €5,000 for vehicles with domestic components, amid rising industry challenges. The automotive sector has lost over 51,000 jobs this year due to weak EV demand, Chinese competition, and potential US tariffs, per industry reports. German Chancellor’s push for EU 2035 combustion engine flexibility sparks debate on balancing climate ambitions with industrial needs. Discover impacts on jobs and innovation—read expert insights now. What is the German Position on the EU’s 2035 Combustion Engine Ban? The EU’s 2035 combustion engine ban targets zero CO₂ emissions from new car registrations to combat climate change, but German Chancellor Friedrich Merz seeks amendments for technology-neutral regulations. In a letter to European Commission President Ursula von der Leyen, Merz argues for considering the entire passenger car fleet’s emissions, not just new vehicles, to foster innovation and maintain industrial strength. This stance reflects Germany’s effort to protect its vital automotive economy while advancing sustainability. How Does Germany’s Proposal Address Industry Challenges? Germany’s automotive sector, employing millions and contributing significantly to GDP, faces severe pressures from the impending ban. Merz proposes raising blending quotas for synthetic and advanced biofuels to cut emissions in existing fleets, stating there is untapped potential for reductions. Industry leaders echo this: Mercedes-Benz Chairman and CEO Ola Källenius, also president of the European Automobile Manufacturers’ Association (ACEA), warned in August that rigid enforcement could collapse the European market, with consumers stockpiling petrol and…

Germany Seeks Flexible EU Rules for Combustion Engines Beyond 2035 Deadline

2025/11/29 08:17
  • Merz’s letter to Ursula von der Leyen highlights flexible, realistic regulations to meet EU climate targets without stifling innovation.

  • Germany supports EV adoption through subsidies up to €5,000 for vehicles with domestic components, amid rising industry challenges.

  • The automotive sector has lost over 51,000 jobs this year due to weak EV demand, Chinese competition, and potential US tariffs, per industry reports.

German Chancellor’s push for EU 2035 combustion engine flexibility sparks debate on balancing climate ambitions with industrial needs. Discover impacts on jobs and innovation—read expert insights now.

What is the German Position on the EU’s 2035 Combustion Engine Ban?

The EU’s 2035 combustion engine ban targets zero CO₂ emissions from new car registrations to combat climate change, but German Chancellor Friedrich Merz seeks amendments for technology-neutral regulations. In a letter to European Commission President Ursula von der Leyen, Merz argues for considering the entire passenger car fleet’s emissions, not just new vehicles, to foster innovation and maintain industrial strength. This stance reflects Germany’s effort to protect its vital automotive economy while advancing sustainability.

How Does Germany’s Proposal Address Industry Challenges?

Germany’s automotive sector, employing millions and contributing significantly to GDP, faces severe pressures from the impending ban. Merz proposes raising blending quotas for synthetic and advanced biofuels to cut emissions in existing fleets, stating there is untapped potential for reductions. Industry leaders echo this: Mercedes-Benz Chairman and CEO Ola Källenius, also president of the European Automobile Manufacturers’ Association (ACEA), warned in August that rigid enforcement could collapse the European market, with consumers stockpiling petrol and diesel models, disrupting emissions goals. Data from the sector shows over 51,000 jobs lost in 2024 alone, driven by sluggish EV sales, fierce Chinese competition, and looming US tariffs. Volkswagen CEO Oliver Blume similarly deems a 100% EV shift by 2035 unrealistic, urging a pragmatic approach. Subsidies of up to €5,000 for electric or hybrid vehicles with German components aim to boost domestic adoption, yet experts like Källenius stress the need for broader flexibility to avert factory closures and economic fallout. This proposal integrates biofuels and hybrid technologies, supported by engineering analyses from bodies like ACEA, which highlight that synthetic fuels could reduce lifecycle emissions by up to 90% compared to traditional variants.

Frequently Asked Questions

What Are the Key Impacts of the EU 2035 Combustion Engine Ban on Germany’s Economy?

The ban threatens Germany’s automotive industry, which supports over 13 million jobs across the EU and 7% of bloc employment. With more than 51,000 positions already cut this year due to weak EV demand and external pressures, experts warn of widespread factory shutdowns and supply chain disruptions if unadjusted, potentially eroding the nation’s export-driven growth.

Why Is Germany Pushing for Flexibility in EU Vehicle Emission Rules?

Germany seeks to align climate protection with economic reality by promoting technology-neutral policies that include biofuels and fleet-wide emissions tracking. Chancellor Merz emphasizes innovation and job security, noting that overly strict new-registration rules could hinder the sector’s competitiveness against global rivals like China.

Key Takeaways

  • Technology-Neutral Approach: Merz’s proposal allows combustion engines with low-emission fuels beyond 2035, focusing on total fleet CO₂ to meet EU targets realistically.
  • Industry Warnings: Leaders like Ola Källenius and Oliver Blume highlight risks of market collapse and job losses exceeding 51,000 already seen, urging a balanced regulatory shift.
  • Global Competition Pressures: Rising Chinese EV makers like BYD, expanding dealer networks with cheaper models, intensify the need for EU flexibility to safeguard 13 million jobs.

Conclusion

The German push for flexibility in the EU 2035 combustion engine ban underscores a critical tension between ambitious climate goals and the harsh realities of industrial competition. By advocating for technology-neutral CO₂ regulations that encompass the full vehicle fleet, Chancellor Merz aims to preserve innovation, secure jobs, and counter threats from Chinese EV dominance. As the European Commission deliberates announcements expected on December 10, stakeholders must prioritize sustainable pathways that support both environmental progress and economic resilience, ensuring Europe’s automotive leadership endures into the future.

Industry Crisis Persists

Amid these debates, Germany’s automotive giants continue to grapple with profound challenges. The sector’s downturn is exacerbated by subdued demand for electric vehicles, which has not met projections despite incentives. Factory idling and restructuring announcements from Volkswagen and Mercedes-Benz illustrate the urgency, with executives like Källenius calling for a “reality check” to prevent irreversible damage. Biofuel enhancements, as proposed, could extend the viability of internal combustion engines, drawing on advancements in synthetic e-fuels that align with net-zero aspirations. Historical data from the International Energy Agency supports this, showing biofuels’ role in bridging transitions without full electrification by mandated dates.

A Clash of Climate Ambition with Industrial Reality

Divergent national views highlight the EU’s internal fractures on the 2035 targets. While Germany prioritizes adaptability, France and Spain advocate firmness, though France concedes to technological openness while favoring EVs. In 2022, Italy, Portugal, Slovakia, Bulgaria, and Romania sought a five-year postponement, reflecting broader southern European concerns over implementation costs. Environmental advocates, including groups like Transport & Environment, oppose dilutions, arguing they undermine the bloc’s Paris Agreement commitments and could raise long-term emissions. Conversely, EV-focused firms like Volvo resist changes, citing their €10 billion-plus investments in batteries and electrification. Commission Vice-President Stéphane Séjourné’s recent signals of openness suggest potential compromises, informed by economic impact assessments from the European Parliament, which project up to 500,000 job risks if affordability lags.

Chinese EV Competition on the Rise

The influx of affordable Chinese electric vehicles adds another layer of complexity. BYD and peers are aggressively expanding, doubling dealer networks and undercutting European prices by 20-30%, per market analyses from the ACEA. This surge challenges incumbents already strained by the transition, as EU tariffs on Chinese imports—provisionally at 45%—offer temporary relief but not a long-term solution. Industry forecasts from Deloitte indicate that without regulatory adjustments, Europe’s market share could erode further, jeopardizing the 7% employment footprint. Policymakers must thus weave in measures like the German subsidies to accelerate domestic capabilities in battery production and supply chains.

Source: https://en.coinotag.com/germany-seeks-flexible-eu-rules-for-combustion-engines-beyond-2035-deadline

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

The Adoption of Web3 in Europe: Current Status, Opportunities, and Challenges

The Adoption of Web3 in Europe: Current Status, Opportunities, and Challenges

How decentralization technologies are advancing in the Old Continent.
Share
The Cryptonomist2025/12/06 15:00
Wang Yongli, former vice president of the Bank of China: Why did China resolutely halt stablecoins?

Wang Yongli, former vice president of the Bank of China: Why did China resolutely halt stablecoins?

Written by: Wang Yongli , former Vice President of Bank of China China's policy orientation of accelerating the development of the digital yuan and resolutely curbing virtual currencies, including stablecoins, is now fully clear. This is based on a comprehensive consideration of factors such as China's leading global advantages in mobile payments and the digital yuan, the sovereignty and security of the yuan, and the stability of the monetary and financial system. Since May 2025, the United States and Hong Kong have been racing to advance stablecoin legislation, which has led to a surge in global legislation on stablecoins and crypto assets (also known as "cryptocurrencies" or "virtual currencies"). A large number of institutions and capital are flocking to issue stablecoins and invest in crypto assets, which has also sparked heated debate on whether China should fully promote stablecoin legislation and the development of RMB stablecoins (including offshore ones). Furthermore, after the United States legislated to prohibit the Federal Reserve from issuing digital dollars, whether China should continue to promote digital RMB has also become a hot topic of debate. For China, this involves the direction and path of national currency development. With the global spread of stablecoins and the increasingly acute and complex international relations and fiercer international currency competition, this has a huge and far-reaching impact on how the RMB innovates and develops, safeguards national security, and achieves the strategic goals of a strong currency and a financial power. We must calmly analyze, accurately grasp, and make decisions early. We cannot be indifferent or hesitant, nor can we blindly follow the trend and make directional and subversive mistakes. Subsequently, the People's Bank of China announced that it would optimize the positioning of the digital yuan within the monetary hierarchy (adjusting the previously determined M0 positioning. This is a point I have repeatedly advocated from the beginning; see Wang Yongli's WeChat public account article "Digital Yuan Should Not Be Positioned as M0" dated January 6, 2021), further optimize the digital yuan management system (establishing an international digital yuan operations center in Shanghai, responsible for cross-border cooperation and use of the digital yuan; and establishing a digital yuan operations management center in Beijing, responsible for the construction, operation, and maintenance of the digital yuan system), and promote and accelerate the development of the digital yuan . On November 28, the People's Bank of China and 13 other departments jointly convened a meeting of the coordination mechanism for combating virtual currency trading and speculation. The meeting pointed out that due to various factors, virtual currency speculation has recently resurfaced, and related illegal and criminal activities have occurred frequently, posing new challenges to risk prevention and control. It emphasized that all units should deepen coordination and cooperation, continue to adhere to the prohibitive policy on virtual currencies, and persistently crack down on illegal financial activities related to virtual currencies. It clarified that stablecoins are a form of virtual currency , and their issuance and trading activities are also illegal and subject to crackdown. This has greatly disappointed those who believed that China would promote the development of RMB stablecoins and correspondingly relax the ban on virtual currency (crypto asset) trading. Therefore, China's policy orientation of accelerating the development of the digital yuan and resolutely curbing virtual currencies, including stablecoins, is now fully clear . Of course, this policy orientation remains highly debated both domestically and internationally, and there is no consensus among the public. So, how should we view this major policy direction of China? This article will first answer why China resolutely halted stablecoins; how to accelerate the innovative development of the digital yuan will be discussed in another article . There is little room or opportunity for the development of non-USD stablecoins. Since Tether launched USDT, a stablecoin pegged to the US dollar, in 2014 , USD stablecoins have been operating for over a decade and have formed a complete international operating system. They have basically dominated the entire crypto asset trading market, accounting for over 99% of the global fiat stablecoin market capitalization and trading volume . This situation arises from two main factors. First, the US dollar is the most liquid and has the most comprehensive supporting system of international central currencies, making stablecoins pegged to the dollar the easiest to accept globally. Second, it is also a result of the US's long-standing tolerant policy towards crypto assets like Bitcoin and dollar-denominated stablecoins, rather than leading the international community to strengthen necessary regulation and safeguard the fundamental interests of all humanity. Even this year, when the US pushed for legislation on stablecoins and crypto assets, it was largely driven by the belief that dollar-denominated stablecoins would increase global demand for the dollar and dollar-denominated assets such as US Treasury bonds, reduce the financing costs for the US government and society, and strengthen the dollar's international dominance. This was a choice made to enhance US support for dollar-denominated stablecoins and control their potential impact on the US, prioritizing the maximization of national interests while giving little consideration to mitigating the international risks of stablecoins. With the US strongly promoting dollar-denominated stablecoins, other countries or regions launching non-dollar fiat currency stablecoins will find it difficult to compete with dollar-denominated stablecoins on an international level, except perhaps within their own sovereign territory or on the issuing institution's own e-commerce platform. Their development potential and practical significance are limited . Lacking a strong ecosystem and application scenarios, and lacking distinct characteristics compared to dollar-denominated stablecoins, as well as the advantage of attracting traders and transaction volume, the return on investment for issuing non-dollar fiat currency stablecoins is unlikely to meet expectations, and they will struggle to survive in an environment of increasingly stringent legislation and regulation in various countries. The legislation on stablecoins in the United States still faces many problems and challenges. Following President Trump's second election victory, his strong advocacy for crypto assets such as Bitcoin fueled a new international frenzy in cryptocurrency trading, driving the rapid development of dollar-denominated stablecoin trading and a surge in stablecoin market capitalization. This not only increased demand for the US dollar and US Treasury bonds, strengthening the dollar's international status, but also brought huge profits to the Trump family and their cryptocurrency associates. However, this also posed new challenges to the global monitoring of the dollar's circulation and the stability of the traditional US financial system. Furthermore, the trading and transfer of crypto assets backed by dollar-denominated stablecoins has become a new and more difficult-to-prevent tool for the US to harvest global wealth, posing a serious threat to the monetary sovereignty and wealth security of other countries . This is why the United States has accelerated legislation on stablecoins, but its legislation is more about prioritizing America and maximizing American and even group interests, at the expense of the interests of other countries and the common interests of the world. After the legislation on US dollar stablecoins came into effect, institutions that have not obtained approval and operating licenses from US regulators will find it difficult to issue and operate US dollar stablecoins in the United States (for this reason, Tether has announced that it will apply for US-issued USDT). Stablecoin issuers subject to US regulation must meet regulatory requirements such as Know Your Customer (KYC), Anti-Money Laundering (AML), and Counter-Terrorist Financing (FTC). They must be able to screen customers against government watchlists and report suspicious activities to regulators. Their systems must have the ability to freeze or intercept specific stablecoins when ordered by law enforcement agencies. Stablecoin issuers must have reserves of no less than 100% US dollar assets (including currency assets, short-term Treasury bonds, and repurchase agreements backed by Treasury bonds) approved by regulators, and must keep US customer funds in US banks and not transfer them overseas. They are prohibited from paying interest or returns on stablecoins, and strict control must be exercised over-issuance and self-operation. Reserve assets must be held in custody by an independent institution approved by regulators and must be audited by an auditing firm at least monthly and an audit report must be issued. This will greatly enhance the value stability of stablecoins relative to the US dollar, strengthen their payment function and compliance, while weakening their investment attributes and illegal use; it will also significantly increase the regulatory costs of stablecoins, thereby reducing their potential for exorbitant profits in an unregulated environment. The US stablecoin legislation officially took effect on July 18, but it still faces numerous challenges : While it stipulates the scope of reserve assets for stablecoin issuance (bank deposits, short-term Treasury bonds, repurchase agreements backed by Treasury bonds, etc.), since it primarily includes Treasury bonds with fluctuating trading prices, even if reserve assets are sufficient at the time of issuance, a subsequent decline in Treasury bond prices could lead to insufficient reserves; if the reserve asset structures of different issuing institutions are not entirely consistent, and there is no central bank guarantee, it means that the issued dollar stablecoins will not be the same, creating arbitrage opportunities and posing challenges to relevant regulation and market stability; even if there is no over-issuance of stablecoins at the time of issuance, allowing decentralized finance (DeFi) to engage in stablecoin lending could still lead to stablecoin derivation and over-issuance, unless it is entirely a matchmaking between lenders and borrowers rather than proprietary trading; getting stablecoin issuers outside of financial institutions to meet regulatory requirements is not easy, and regulation also presents significant challenges. More importantly, the earliest and most fundamental requirement for stablecoins is the borderless, decentralized, 24/7 pricing and settlement of crypto assets on the blockchain. It is precisely because crypto assets like Bitcoin cannot fulfill the fundamental requirement of currency as a measure of value and a value token—that the total amount of currency must change in line with the total value of tradable wealth requiring monetary pricing and settlement—that their price relative to fiat currency fluctuates wildly (therefore, using crypto assets like Bitcoin as collateral or strategic reserves carries significant risks), making it difficult to become a true circulating currency. This has led to the development of fiat stablecoins pegged to fiat currencies. (Therefore, Bitcoin and similar crypto assets can only be considered crypto assets; calling them "cryptocurrency" or "virtual currency" is inaccurate; translating the English word "Token" as "币" or "币" is also inappropriate; it should be directly transliterated as "通证" and clearly defined as an asset, not currency.) The emergence and development of fiat-backed stablecoins have brought fiat currencies and more real-world assets (RWAs) onto the blockchain, strongly supporting on-chain cryptocurrency trading and development. They serve as a channel connecting the on-chain cryptocurrency world with the off-chain real-world, thereby strengthening the integration and influence of the cryptocurrency world on the real world. This will significantly enhance the scope, speed, scale, and volatility of global wealth financialization and financial transactions, accelerating the transfer and concentration of global wealth in a few countries or groups. In this context, failing to strengthen global joint regulation of stablecoins and cryptocurrency issuance and trading poses extremely high risks and dangers . Therefore, the surge in stablecoin and cryptocurrency development driven by the Trump administration in the United States has already revealed a huge bubble and potential risks, making it unsustainable. The international community must be highly vigilant about this! Stablecoin legislation could severely backfire on stablecoins. One unexpected outcome of stablecoin legislation is that the inclusion of fiat-backed stablecoins in legislative regulation will inevitably lead to legislative regulation of crypto asset transactions denominated and settled using fiat-backed stablecoins, including blockchain-generated assets such as Bitcoin and on-chain real-world assets (RWA). This will have a profound impact on stablecoins. Before crypto assets receive legislative regulation and compliance protection, licensed financial institutions such as banks find it difficult to directly participate in crypto asset trading, clearing, custody, and other related activities, thus ceding opportunities to private organizations outside of financial institutions. Due to the lack of regulation and the absence of regulatory costs, existing stablecoin issuers and crypto asset trading platforms have become highly profitable and attractive entities, exerting an increasing impact on banks and the financial system, forcing governments and monetary authorities in countries like the United States to accelerate legislative regulation of stablecoins. However, once crypto assets receive legislative regulation and compliance protection, banks and other financial institutions will undoubtedly participate fully. Payment institutions such as banks can directly promote the on-chain operation of fiat currency deposits (deposit tokenization), completely replacing stablecoins as a new channel and hub connecting the crypto world and the real world . Similarly, existing stock, bond, money market fund, and ETF exchanges can promote the on-chain trading of these relatively standardized financial products through RWA (Real-Time Asset Exchange). Having adequately regulated financial institutions such as banks act as the main entities connecting the crypto world and the real world on the blockchain is more conducive to implementing current legislative requirements for stablecoins, upholding the principle of "equal regulation for the same business" for all institutions, and reducing the impact and risks of crypto asset development on the existing monetary and financial system. This trend has already emerged in the United States and is rapidly intensifying, proving difficult to stop . Therefore, stablecoin legislation may seriously backfire on or subvert stablecoins ( see Wang Yongli's WeChat public account article "Stablecoin Legislation May Seriously Backfire on Stablecoins" on September 3, 2025 ). In this situation, it is not a reasonable choice for other countries to follow the US lead and vigorously promote stablecoin legislation and development. China should not follow the path of stablecoins taken by the United States. China already has a leading global advantage in mobile payments and the digital yuan. Promoting a stablecoin for the yuan has no advantage domestically, and it will have little room for development and influence internationally. It should not follow the path of the US dollar stablecoin, but should instead focus on promoting the development of stablecoins for the yuan, both domestically and offshore. More importantly, crypto assets and stablecoins like Bitcoin can achieve 24/7 global trading and clearing through borderless blockchains and crypto asset trading platforms. While this significantly improves efficiency, the highly anonymous and high-frequency global flow, lacking coordinated international oversight, makes it difficult to meet regulatory requirements such as KYC, AML, and FTC. This poses a clear risk and has been demonstrated in real-world cases of being used for money laundering, fundraising fraud, and illegal cross-border fund transfers. Given that US dollar stablecoins already dominate the crypto asset trading market, and the US has greater control or influence over major global blockchain operating systems, crypto asset trading platforms, and the exchange rate between crypto assets and the US dollar (as evidenced by the US's ability to trace, identify, freeze, and confiscate the crypto asset accounts of some institutions and individuals, and to punish or even arrest some crypto asset trading platforms and their leaders), China's development of a RMB stablecoin following the path of US dollar stablecoins not only fails to challenge the international status of US dollar stablecoins but may even turn the RMB stablecoin into a vassal of US dollar stablecoins. This could impact national tax collection, foreign exchange management, and cross-border capital flows, posing a serious threat to the sovereignty and security of the RMB and the stability of the monetary and financial system. Faced with a more acute and complex international situation, China should prioritize national security and exercise high vigilance and strict control over the trading and speculation of crypto assets, including stablecoins, rather than simply pursuing increased efficiency and reduced costs . It is necessary to accelerate the improvement of relevant regulatory policies and legal frameworks, focus on key links such as information flow and capital flow, strengthen information sharing among relevant departments, further enhance monitoring and tracking capabilities, and severely crack down on illegal and criminal activities involving crypto assets. Of course, while resolutely halting stablecoins and cracking down on virtual currency trading and speculation, we must also accelerate the innovative development and widespread application of the digital yuan at home and abroad, establish the international leading advantage of the digital yuan, forge a Chinese path for the development of digital currency, and actively explore the establishment of a fair, reasonable and secure new international monetary and financial system . Taking into account the above factors, it is not difficult to understand why China has chosen to resolutely curb virtual currencies, including stablecoins, while firmly promoting and accelerating the development of the digital yuan.
Share
PANews2025/12/06 15:08
Current Status, Opportunities, and Challenges

Current Status, Opportunities, and Challenges

The post Current Status, Opportunities, and Challenges appeared on BitcoinEthereumNews.com. In recent years, even Europe, traditionally cautious towards new technologies, seems to be experiencing a phase of progressive adoption of Web3. The Old Continent is tackling the challenges of decentralization technologies, amidst innovative momentum, strict regulations, and new opportunities for businesses and creatives.  Web3: The Technologies of Decentralization Web3 refers to the evolution of the Internet towards a decentralized model, based on blockchain, smart contracts, tokens, crypto, and distributed digital identities.  According to what is described by Amazon Web Services, other key technologies of Web3 include artificial intelligence (AI), machine learning, WebAssembly, semantic technologies and interfaces such as decentralized wallets and augmented reality (AR) and virtual reality (VR).  All these technologies aim to give users greater control over their own data and ownership of digital assets, eliminating reliance on centralized intermediaries. Moreover, Web3 projects are mostly driven directly by the community.  Thus, the first challenge of Web3 is to evolve Web2, dominated by centralized platforms. With decentralization technologies, Web3 aims to  return control and ownership of data to users; eliminate intermediaries thanks to smart contracts; create digital economies based on tokens and NFTs; promote greater transparency and security. Today, Web3 is capable of influencing sectors such as finance, art, video games, music, real estate, and digital governance.  The Adoption of Web3 in Europe: A Conscious Growth The adoption of Web3 in Europe is not predominant compared to other continents like North America and Asia. However, it can be stated that in the Old Continent, the adoption of Web3 is in a hybrid phase: it is not a matter of mass usage, but rather a growing number of businesses, professionals, and informed users.  For example, in the blockchain and crypto sector, the report by Chainalysis confirmed that between July 2023 and June 2024, the European region experienced significant growth and resilience. …
Share
BitcoinEthereumNews2025/12/06 15:24