According to the European Investment Bank, the EU is lagging behind China and the US in terms of blockchain investment and artificial intelligence.
The European Investment Bank said on Tuesday that it expects a permanent investment deficit of about 10 billion euros ($ 12 billion) for both technologies. According to Reuters, China and the US currently account for 80% of the $ 25 billion invested globally in blockchain and artificial intelligence, while the EU only accounts for 7% of that.
The bank said the underinvestment in both sectors compared to other regions is a sign that the EU is not using scientific knowledge in viable business models.
“Businesses and governments in Europe are not investing as much in AI and blockchain as other leading regions, and it’s clear that the EU is struggling to translate its scientific advantages into business applications and economic success,” the report says.
The European Investment Bank said it expects investments in both technologies will contribute to the global recovery from the coronavirus in all sectors, from healthcare to financial services. The bank said additional funding from private markets would be required if the EU kept pace with global competitors.
“EU and member countries’ support schemes could partially fill this gap, but it is clear that private markets will have to contribute to the balance sheet,” the bank said.
Even with the lack of investment demonstrated by the European Investment Bank, financial institutions in Europe continue to experiment with blockchain technology. The Bank of France recently used the Ethereum blockchain to conduct beta testing of the central bank’s digital currency. Most of the largest EU countries have announced their intention to study the development of central bank digital currencies in the coming years.