In this episode of the Bitcoin, Fiat & Rock’n’Roll podcast, Joachim Schwerin, Principal Economist at the European Commission, offered a rare and candid insight into the state of digital asset policy in Europe—and issued a clear call to action: preserve the core values of decentralisation while building a regulatory framework that enables innovation without criminalising it – Schwerin supports a new initiative: the Digital Freedom Declaration.
Schwerin, who has worked at the European Commission since 2001, reflected on his long path through industrial policy, competition law, and SME finance before shifting focus toward digital innovation and blockchain technologies. Today, his work focuses on governance models for decentralised autonomous organisations (DAOs) and responsible business conduct. His perspective is rooted in both long-term policymaking and a personal belief in the transformative potential of decentralised systems.
A Crisis That Changed Everything
Schwerin traces his entry into digital finance to the 2008 financial crisis, which exposed the risks of over-centralisation in Europe’s banking system. “We suddenly had to save systemic banks overnight,” he recalls. “It made us realise how vulnerable we are when finance relies too heavily on centralised structures.”
The coincidence of the Lehman Brothers collapse and the publication of the Bitcoin white paper just weeks later left a lasting impression. “The worst moment for centralised systems and the birth of a decentralised alternative—that’s not a coincidence,” Schwerin observes.
Since then, he has championed the exploration of blockchain as a general-purpose technology with implications beyond finance, including supply chain transparency, document authentication, and digital identity.
Blockchain Beyond the Buzzwords
Despite Europe’s quiet but ongoing work on blockchain infrastructure—such as the European Blockchain Services Infrastructure (EBSI)—Schwerin acknowledges that blockchain still suffers from association with crypto scandals. “We often had to stop using the word ‘blockchain’ altogether just to get a seat at the table,” he admits, citing a communication strategy that focuses on use cases rather than the underlying technology.
Schwerin highlights that many digital policy conversations today still lump together distinct technologies—Bitcoin, privacy coins, smart contracts—often framing them through the lens of money laundering or criminal activity. He sees this as both a knowledge gap and a power dynamic: “Decentralised systems challenge existing structures. That alone makes them a threat to some.”
Tornado Cash and Developer Liability
One of the podcast’s central themes is the growing legal pressure on developers of privacy-focused tools. Schwerin takes a clear position on the conviction of Tornado Cash developer Alexey Pertsev in the Netherlands, where he was sentenced to over five years in prison.
“Tornado Cash is not a criminal organisation,” Schwerin argues. “It’s an open-source protocol that provides a needed layer of privacy in the blockchain space. If you write code and publish it, and years later someone uses it for criminal purposes—that should not make you liable.”
Drawing analogies to physical tools, he compares the situation to holding a car manufacturer accountable for a getaway vehicle used in a robbery. “This kind of reasoning is dangerously one-sided,” he warns, “and it fundamentally misunderstands how open, decentralised systems work.”
Digital Freedom Declaration
In response, Schwerin supports a new initiative: the Digital Freedom Declaration—a statement of principles calling for the protection of developers, the right to privacy, and the creation of clear, proportionate legal frameworks for emerging technologies.
“The declaration doesn’t have authors in the traditional sense,” he says. “Let’s say it was co-written by Satoshi Nakamoto, an extraterrestrial, and Elvis Presley. But it’s real—and growing.”
The declaration, available at digitalfreedom.page, has attracted support from policy experts, technologists, and associations including the Digital Euro Association. Schwerin is explicit: the point is not to evade accountability but to place it where it belongs—on those who misuse tools, not those who build them.
Regulation With a Light Touch
Throughout the conversation, Schwerin walks a fine line: embracing regulation where necessary but rejecting heavy-handed approaches that stifle experimentation. “We need clear rules,” he says, “but not rigid ones. The goal is to create a legal environment that enables innovation, not kills it pre-emptively.”
He is particularly focused on preserving the “radical core” of decentralised innovation. “If we lose that, we lose the societal promise of blockchain,” he cautions.
Looking ahead, Schwerin sees generational change as inevitable. “The people now entering institutions are digital natives. They grew up in decentralised ecosystems, in gaming environments. Their view of technology is organic. Change will come.”
Call to Engagement
The conversation concludes on a practical note: Schwerin encourages policymakers, developers, and business leaders alike to engage with the technology—not just in theory, but hands-on. “Set up a wallet. Try a smart contract. Use a mixer. Understand the mechanics before forming opinions,” he advises. “Only then can we have a meaningful dialogue.”
He remains optimistic, despite the challenges. “I’m 57, and I don’t accept the idea that my generation is here to ruin the future. We still have a chance to build something meaningful—and to protect the freedoms that will define the digital age.”
For businesses navigating this space, the message is clear: get involved, stay informed, and support efforts to build a balanced and future-proof digital economy.
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