25 Amendments of Eva KAILI related to 2018/2085(INI)
Amendment 7 #
Draft opinion
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Recognizes the significance of Distributed Ledger Technologies in improving the operations of International Trade and stresses the importance of further developing the DLT applications in the spirit of an innovation friendly approach that it is both technology neutral and business model neutral.
Amendment 10 #
Draft opinion
Paragraph 1 b (new)
Paragraph 1 b (new)
1 b. DLT is a general-purpose technology, which has the capacity to reduce the transaction costs, improve efficiency by removing intermediaries and intermediation costs and increase the transparency and trust between the transacting parties through appropriate encryption and control mechanisms
Amendment 11 #
Draft opinion
Paragraph 1 c (new)
Paragraph 1 c (new)
1 c. DLT is a “family” of distributed technologies of different designs, verification protocols and governance mechanisms, primarily divided between permissioned and permission-less ledgers. Though the application of permission-less blockchains can be used in the operations of international trade, we note that the majority of the applications that employ DLTs so far are based on permissioned ledgers.
Amendment 12 #
Draft opinion
Paragraph 1 d (new)
Paragraph 1 d (new)
1 d. Notes that in the case of application of permission-less ledgers for international trade operations, the consensus mechanisms employed(e.g. “proof of work”, “proof of stake”, “proof of elapsed time” inter alia)have various energy consumption needs;
Amendment 13 #
Draft opinion
Paragraph 1 e (new)
Paragraph 1 e (new)
1 e. Urges the consensus mechanisms should be environmentally friendly and less energy consuming.
Amendment 14 #
Draft opinion
Paragraph 1 f (new)
Paragraph 1 f (new)
1 f. Underlines that DLT can be employed to reduce corruption, detect tax evasion, allow the tracking of unlawful payments, facilitate anti-money laundering policies and detect misappropriation of assets.
Amendment 15 #
Draft opinion
Paragraph 1 g (new)
Paragraph 1 g (new)
1 g. Stresses that International Trade operations can be significantly improved especially in relation to the monitoring of the origin of goods and their ingredients through the supply chain, by providing a verification mechanism that advances visibility and compliance check that can ensure that sustainability and human rights protocols are followed in the place of origin of a product.
Amendment 16 #
Draft opinion
Paragraph 1 h (new)
Paragraph 1 h (new)
1 h. Highlights that DLT can provide mechanism that mitigate the risk of the entering of illegal goods in the supply chain and ensure consumer protection. DLT can be an essential tool for the improvement of the operations of the Custom authorities in the fight of contraband;
Amendment 17 #
Draft opinion
Paragraph 1 i (new)
Paragraph 1 i (new)
1 i. Notes that DLT minimizes the cost of logistics, shipping and transportation with a significant reduction in documentation and verification cost, with digitization of standard documents of transfer of ownership (e.g. bills of landing) improving thus the certainty and efficiency in various sectors, including container shipping;
Amendment 18 #
Draft opinion
Paragraph 1 j (new)
Paragraph 1 j (new)
1 j. Calls on the Commission to explore best practices, encourage the development of applications and collaborate with the Member States for the development of coordinated actions that improve monitoring, control. security, and verification mechanisms as well as DLT based collaborative mechanisms between the Customs and Tax Authorities of the EU;
Amendment 27 #
Draft opinion
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Stresses that smart contracts can be a key enabler of decentralized application in international trade operations. We note that even though smart contracts is a developed concept in Computer Science, it is still new in a legal context and they are not developed yet to be considered as legally enforceable. There are technological risks, jurisdiction risks and general lack of mutual recognition that must be addressed;
Amendment 28 #
Draft opinion
Paragraph 3 b (new)
Paragraph 3 b (new)
3 b. Notes that though it cannot be ruled out the potential of smart contracts for international trade operations, further encouragement is necessary for the development of technical standards that will ensure the quality, efficiency, security and arbitration mechanisms of those smart contracts;
Amendment 29 #
Draft opinion
Paragraph 3 c (new)
Paragraph 3 c (new)
3 c. Encourages the further investigation of the possibility of use of cryptocurrencies (potentially a crypto- Euro) that will enable the transfer of value and assets between transacting parties in international trade operations via smart contracts;
Amendment 30 #
Draft opinion
Paragraph 3 d (new)
Paragraph 3 d (new)
3 d. Calls on the Commission to promote the legal validity and mutual recognition of digital signatures throughout EU;
Amendment 35 #
Draft opinion
Paragraph 4 a (new)
Paragraph 4 a (new)
4 a. Emphasizes that DLTs technologies employed for international trade operations are data sensitive and GDPR provisions should be applied;
Amendment 36 #
Draft opinion
Paragraph 4 b (new)
Paragraph 4 b (new)
4 b. Underscores that cybersecurity is critical for DLT based international trade operations. Calls on the Commission to monitor the technological developments (especially in quantum computing), explore the security challenges assess technological risks and undertake actions that improve our knowledge of the dangers associated with the use of DLTs;
Amendment 37 #
Draft opinion
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Notes that DLT is not merely a technology but an infrastructure in a wider sense and can work as the basis of the development of Internet of Things applications, that are essential for the automation and digital transformation of international trade;
Amendment 38 #
Draft opinion
Paragraph 6 b (new)
Paragraph 6 b (new)
6 b. Calls on the Commission to promote and finance programmes that educate international trade stakeholders about the opportunities and challenges that DLTs bring in their operations as well as promote pilot projects and research initiatives to this direction;
Amendment 39 #
Draft opinion
Paragraph 6 c (new)
Paragraph 6 c (new)
6 c. Underscores that the need for efficiency in international trade requires interoperability between DLTs as well as between DLTs and legacy operation systems. We note that standardization is necessary for the diffusion of the DLTs innovation and scalability;
Amendment 40 #
Draft opinion
Paragraph 6 d (new)
Paragraph 6 d (new)
6 d. Highlights that standards setting is critical for DLT enabled international trade operations. A global view should be adopted by the EU in the development of standards. We call on the Commission to continue its collaboration with ISO and other international organizations in this field;
Amendment 43 #
Draft opinion
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Notes that DLT enables SMEs andstartups to explore innovative ways that improve international tradeoperations. Reduces the entry barriers of the firms and create opportunitiesfor jobs and growth across the line of the international supply chains;
Amendment 45 #
Draft opinion
Paragraph 7 b (new)
Paragraph 7 b (new)
7 b. Underscores that innovative SMEs and startups should be encouraged to explore opportunities opened by DLT in the space of international trade. The development of an innovating ecosystem around these applications should be developed in the EU. For achieving this goal, it is important to accelerate the channelling of capital from structural funds and investment instruments of the European Investment Fund to those innovative SMEs and startups;
Amendment 47 #
Draft opinion
Paragraph 7 c (new)
Paragraph 7 c (new)
7 c. Underlines the improved transparency provided by DLT in international trade operations has the potential to reduce the costs of international trade insurance policies and facilitate the international trade financing operations and documentation;
Amendment 48 #
Draft opinion
Paragraph 7 d (new)
Paragraph 7 d (new)
7 d. Calls on the EBA to explore the possibility of safe commercial bank operations that include the use of DLT based applications in order to improve the quality and streamlining of international trade financing;
Amendment 49 #
Draft opinion
Paragraph 7 e (new)
Paragraph 7 e (new)
7 e. Calls on the ECB to recognize the need and explore the feasibility of a crypto-based Euro. A crypto-Euro can be a significant innovation that will enable the coding of the currency for execution of payments in algorithms that streamline international trade transactions, especially in smart contracts;