The European Strategy on Digital Finance and Its Interplay with Capital Markets Integration in the EU

Abstract

This chapter focuses on the historical path and the impact of digital finance policies on capital markets integration in the European Union. The first section gives an overview of the origins of key recent technological developments for the financial system, such as distributed ledger technologies, and the principle of regulatory intervention in the EU. The second section delves into the content of the most recent European strategy on digital finance, with a focus on recent regulatory interventions, such as the Markets in Crypto Assets Regulation (MiCAR) and the Distributed Ledger Technology Regulation (DLTR). The last section draws conclusions on the promises and perils of a digital security for capital markets integration and corporate governance.