PayPal Europe, the Luxembourg National Research Fund (FNR) and the University of Luxembourg signed a Memorandum of Understanding (MoU) earlier this week on the creation of a FNR PEARL chair in the field of FinTech.
In an announcement from the Luxembourg government, the chair will be established at the University of Luxembourg’s Interdisciplinary Center for Security, Reliability and Trust (SnT) and will be funded jointly by the FNR and PayPal Europe over a period of five years.
The purpose of the new chair is to clarify digital technologies and to improve the link between users, regulators and industries.
Prime Minister Xavier Bettel, who was there for the signing, said that PayPal’s decision to invest in Luxembourg was a pivotal step in the country’s partnership with PayPal and proof to the university’s academic excellence.
With PayPal, we have found a reputable partner to help create an international fintech center of excellence within the University of Luxembourg.
The Luxembourg government is aspiring to position the country as a global leader in innovative digital financial services and to make it one of the most important areas for FinTech. To achieve this, the government is pushing for developments by increasing closer relationships such as the one between PayPal Europe, the FNR and the University of Luxembourg.
This collaboration is key to the country’s economy with a sector that is undergoing change where new digital technologies can provide opportunities for improved services.
Luxembourg’s FinTech Friendly Stance
Located in western Europe and landlocked by Belgium, Germany and France, Luxembourg with a population of just under 600,000 people, is considered a FinTech friendly location.
So much so, that Luxembourg-based bitcoin exchange Bitstamp became the world’s first nationally licensed bitcoin exchange last year.
By gaining the license it can operate as a payment institution across the European Union’s (EU) 28 countries. As per the EU’s passport program, financial service providers that are legally established in one member state, are legally allowed to operate in the rest of the member states within the EU.
As the latest addition to Luxembourg’s FinTech ecosystem, this presents a massive boost to the country as it continues to develop the sector.
With its favorable conditions and attractive location, Luxembourg is presenting an ideal environment for startups to grow their firms. Not only that, but for those within London who are concerned about the eventual removal from the EU, Luxembourg could be a place of consideration to move their business while remaining in the single market.
Featured image of University of Luxembourg from Facebook.