On March 14, the European Parliament voted in favor of new data controls to be included in a larger bill designed to address data privacy without stifling innovation. A new clause in the bill known as the Data Act requires all smart contracts to include a “kill switch.”

The proposed mandate, which would require smart contracts to include a mechanism for their termination in certain circumstances, has raised concerns about the potential for government intervention and control in the cryptocurrency industry. However, the article argues that the mandate is unlikely to have a significant impact on the industry, given the decentralized and distributed nature of many cryptocurrencies and blockchain networks.

Also, the proposed mandate could actually have some positive effects on the industry, by increasing the credibility and legitimacy of smart contract technology and promoting greater adoption and usage of blockchain-based solutions. The mandate could also help to address concerns about fraud, security, and other risks associated with smart contract technology.

(By Shahar Shamai)